French 10-Year OAT Steadies Near Two-Month Low

2026-02-03 08:59 By Joana Ferreira 1 min. read

France’s 10-year OAT yield held around 3.45%, hovering near its lowest level since late November, as investors digested weaker-than-expected inflation data ahead of the European Central Bank’s policy decision on Thursday.

France’s EU-harmonized consumer price index rose just 0.4% year-on-year in January 2026, the weakest reading since December 2020 and below market expectations of a 0.6% increase.

Markets broadly expect the ECB to leave interest rates unchanged, as policymakers evaluate how a softer US dollar and a surge of low-cost Chinese imports could shape the inflation outlook.

Meanwhile, France’s 2026 state budget was finally approved by parliament on Monday, ending a months-long stalemate that had fueled concerns over rising fiscal risks in the eurozone’s second-largest economy.

Prime Minister Sébastien Lecornu had initially targeted a 2026 deficit of 4.7% of GDP, but concessions to various political groups pushed the figure closer to 5%.



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