The yield on the French 10-year OAT sharply retreated to the 1.7% mark, the lowest in one month, as investors fled to safer securities amid aggravated concerns of economic contraction. Domestic and Eurozone PMI data for June pointed to a sharp drop in new orders, while consumer price inflation for both areas surpassed expectations. During the central bank’s annual forum in Portugal, President Lagarde said that the pace of tighter policy during for Q3 is likely to accelerate if inflation remains high, adding to fears of a downturn in the economy. Traders also continued to await details on the ECB’s new tool and how it will affect bond yield spreads between different members of the currency bloc. Meanwhile, the French government budget deficit shrank during January - May 2022 when compared to the previous year.
Historically, the France Government Bond 10Y reached an all time high of 11.84 in February of 1985. France Government Bond 10Y - data, forecasts, historical chart - was last updated on July of 2022.
The France Government Bond 10Y is expected to trade at 2.38 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2.89 in 12 months time.