France's 10-Year Yield Touches 5% for the First Time Since 2002; Moody's Holds Rating

The yield on France's 10-year government bond reached 5% on Monday, its first time at that level since 2002. Moody's took no rating action, leaving France at Aa3 with a negative outlook. S&P is due to review the country again on Nov. 27.

Separately, Japanese investors have sold global bonds for five straight weeks, the longest streak in four years. Analysis of Bank of Japan data shows a correlation of about -0.66 between rolling 12-month Japanese net purchases and changes in the U.S. 10-year yield since 2014, though the data does not prove cause and effect.

Elevated global yields remain a headwind for equities as the Federal Reserve begins a two-day policy meeting on Oct. 27-28.