French OAT Yield at Over Two-Month High

2025-12-08 13:06 By Dongting Liu 1 min. read

France’s 10-year OAT yield climbed above 3.55%, touching its highest level since September 25, amid uncertainty over the 2026 budget and hawkish comments from an ECB official.

The country continues to face challenges in finalizing its budget: after the National Assembly approved the social security tax component on December 5, the full social security budget bill is set for a vote on Tuesday, with Socialist Party leader Olivier Faure confirming his party will support it in parliament.

On the economic front, Finance Minister Roland Lescure projected 2025 growth of at least 0.8%, slightly above the government’s previous 0.7% forecast.

Meanwhile, ECB policymaker Isabel Schnabel indicated that a rate hike could be the central bank’s next move, noting that growth and inflation risks remain tilted to the upside.

Elsewhere, Japanese government bond yields also rose to multi-year highs amid expectations of rate hikes and persistent high debt levels.



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