French 10-Year OAT Yield Falls to December Low

2026-01-26 13:49 By Dongting Liu 1 min. read

France’s 10-year OAT yield slipped to 3.44%, touching its lowest level since early December, as investors welcomed the government’s move to push through the 2026 budget.

Prime Minister Sébastien Lecornu’s administration survived two no-confidence votes in parliament on Friday after forcing through the revenue portion of the budget without a final vote in the National Assembly, easing near-term political uncertainty.

Elsewhere, investors are looking ahead to the release of France’s fourth-quarter GDP data and the Federal Reserve’s policy decision on Wednesday.

While the Fed is widely expected to keep rates unchanged in the near term, markets anticipate at least two rate cuts in 2026, though the timing and scale remain uncertain.

Geopolitical risks remain, as the US-NATO framework on Greenland is still unresolved and President Trump has threatened higher tariffs on South Korean goods, following similar warnings to Canada and Europe earlier this month.



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