CAC 40 Edges Higher As Bond Yields Fall

French stocks advanced on Friday, a day after the European Central Bank raised its growth and inflation projections, while pledging a steady flow of stimulus for now.

U.S. inflation data for May showed a bigger-than-expected increase, but investors are pinning hopes that price pressures will be temporary.

Treasury yields remained near a three-month low amid expectations that the Federal Reserve will stick to its dovish stance at the upcoming June 15-16 meeting.

The benchmark CAC 40 index rose 0.4 percent to 6,573 after declining 0.3 percent in the previous session.

Banks fell sharply as Euro zone government bond yields fell after a dovish outcome to Thursday's ECB meeting. BNP Paribas shed 0.7 percent, Credit Agricole gave up 0.8 percent and Societe Generale fell as much as 1.5 percent.

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