French 10-Year OAT Near 14-Year High Amid Political Deadlock

2025-10-07 08:39 By Dongting Liu 1 min. read

The yield on the French 10-year OAT hovered around 3.59%, near the 14-year high it reached at the end of September, amid ongoing political paralysis.

The shortest-serving PM in France’s Fifth Republic, Sébastien Lecornu, abruptly resigned, and President Macron tasked him with conducting two days of “final negotiations” with various parties to find a way forward.

President Emmanuel Macron may attempt to form a new cabinet for parliamentary approval, but he is likely to face strong pressure to dissolve the National Assembly and call fresh legislative elections.

Meanwhile, rating agencies have issued fresh warnings on France’s sovereign credit.

Fitch warned that political uncertainty limits the scope for meaningful fiscal consolidation, and that failure to implement such measures—or a persistent rise in financing costs—could put downward pressure on the country’s credit rating, while S&P Global highlighted that passing a budget remains the government’s most pressing challenge.



News Stream
France 10Y Bond Yield Hits 17-year High
France 10 Year Government Bond Yield increased to 3.97%, the highest since June 2009. Over the past 4 weeks, France 10Y Bond Yield gained 37.00 basis points, and in the last 12 months, it increased 70.50 basis points.
2026-07-21
France 10Y Bond Yield Hits 17-year High
France 10 Year Government Bond Yield increased to 3.94%, the highest since June 2009. Over the past 4 weeks, France 10Y Bond Yield gained 36.88 basis points, and in the last 12 months, it increased 55.10 basis points.
2026-07-15
French Bond Yields Surge Amid Political, Oil Market Turmoil
France’s 10-year OAT yield climbed past 3.75%, hitting its highest since May 19, as investors reacted to rising political uncertainty and surging oil prices. Far-right leader Marine Le Pen confirmed plans for a fourth presidential bid, despite a court ruling requiring her to wear an electronic-monitoring device after an appeals panel upheld her conviction for misusing public funds. Polls currently place her National Rally party as the frontrunner, with its candidate expected to advance to the second-round runoff, while President Macron’s successor remains unclear. Oil prices also rose above $78 per barrel following a new exchange of strikes between the US and Iran, heightening inflation fears, with President Trump further escalating tensions by stating that as far as he is concerned, the Iran ceasefire is over. Traders are now pricing in more than 30 basis points of additional ECB tightening this year, equivalent to at least one rate hike, potentially as early as September.
2026-07-08