France’s 10-Year OAT Yield Rises

2026-01-02 10:27 By Joana Ferreira 1 min. read

France’s 10-year OAT yield climbed toward 3.6%, its highest since December 22, following a 37-basis-point increase in 2025.

Investors are preparing for another year of substantial debt issuance, the effects of German fiscal stimulus, and ongoing geopolitical uncertainties.

Adjusted for ECB activity, private investors are expected to absorb a record €234 billion in net supply this year.

Attention has also turned to the Netherlands’ occupational pension system, the EU’s largest, which started transitioning to a new framework on January 1, enabling the nearly €2 trillion sector to invest in riskier assets.

In domestic politics, French lawmakers failed to pass the 2026 budget in December, leading Prime Minister Sébastien Lecornu to introduce emergency measures to maintain spending into January and avert a government shutdown.

The full budget is now expected to be approved in early January.



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