France OATs Hover Following ECB Decision

2025-12-18 14:53 By Dongting Liu 1 min. read

France’s 10-year OAT yield hovered around 3.56% as traders pared back expectations of an ECB rate hike next year following the central bank’s latest policy decision.

As widely anticipated, the ECB left interest rates unchanged, with President Lagarde noting that there had been no discussion of either rate hikes or cuts.

Lagarde also emphasized that the ECB does not have a predetermined path for interest rates and, given the high degree of uncertainty, cannot provide forward guidance.

Reflecting this stance, money markets now assign only around a 16% probability to an ECB rate hike next year.

On the fiscal front, a joint committee from both chambers of France’s parliament is scheduled to meet on December 19 to reconcile differences between the Senate and National Assembly budget drafts.

If an agreement is reached, the unified text will be submitted to the National Assembly for a final vote on December 23.



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