Global markets started the new week with a familiar narrative: elevated US Treasury yields continuing to underpin the dollar, while renewed French fiscal concerns weighed on the euro, according to investingLive's European session wrap.

Market snapshot:

• 10-year Treasury yield: flat at 5.277%
• Currencies: Australian dollar leads; euro and New Zealand dollar lag
• Gold: up 0.3% to $4,153
• Brent crude: up 0.3% to $102.60
• Equities: European stocks mostly higher; S&P 500 futures down 0.1%
• Bitcoin: up 0.3% to $86,099

The softer US jobs report released on Friday brought some relief to stocks and bonds, as investors treat labor-market readings as a key input for gauging the Federal Reserve's policy path. That relief has not gathered pace in the new session, but the broader market mood has not deteriorated either. The bond market remains the key spot to watch, and it continues to keep the overall mood on edge.

Ten-year Treasury yields fell to a low of 5.16% after Friday's jobs data before quickly rebounding to 5.28%. Entering the new week, yields are holding near those levels, with the long end still threatening another push higher. Moves at the long end matter beyond currency markets: benchmark Treasury yields serve as a reference point for borrowing costs worldwide, and elevated US rates widen the dollar's yield advantage over peer currencies. That dynamic is helping to support the dollar, with USD/JPY climbing back above the 158.00 level to 158.25.

The euro is among the day's laggards as French fiscal risks resurface, weighing on both the single currency and French equities. France is the eurozone's second-largest economy, so its debt outlook and budget politics are watched closely for implications that extend across the currency bloc. EUR/USD is down 0.4% at 1.1205, after touching a low of 1.1160 earlier in the session — its weakest level in 17 months.

In equities, European indices held slight gains for the most part, with only the CAC 40 in negative territory. The French benchmark index was down 0.5% on the day, reflecting mounting concerns over the country's debt outlook and political uncertainty ahead of next year's presidential election.

US futures were more tentative, with S&P 500 futures down 0.1% and Nasdaq futures also down 0.1% on the day.

Elsewhere, gold held a touch higher at $4,153 but still lacks real upside conviction below the $4,200 mark.

Attention remains fixed on the bond market heading deeper into the week, as investors assess their next steps following last week's US jobs report, with France's fiscal headlines a second thread worth tracking.

Source: investingLive — European session wrap: Dollar firms as yields stay elevated, French risks weigh on euro