France 10Y Bond Yield Hits 10-week Low

France’s 10-year OAT yield eased below the 3.4% mark, touching its lowest level since mid-November, as investors turned their focus to the delayed US jobs report for clearer direction on the Federal Reserve’s next moves. The data is forecast to show a slight pickup in hiring in January, supported by reduced layoffs in certain seasonal industries. Still, downside risks remain after several US officials, including White House economic adviser Kevin Hassett, warned that job gains could slow in the coming months. In the euro area, investors also weighed signals that the European Central Bank is largely comfortable with the euro’s recent strength, as well as reports that Bank of France Governor François Villeroy de Galhau, regarded as dovish, will leave his post earlier than initially anticipated. ECB President Christine Lagarde said last week that the inflation outlook remains in a “good place,” while minimizing concerns about the currency’s appreciation.

France 10 Year Government Bond Yield decreased to 3.41%, the lowest since November 2025. Over the past 4 weeks, France 10Y Bond Yield lost 9.39 basis points, and in the last 12 months, it increased 25.30 basis points.

France’s 10-year OAT yield traded near 3.45% as investors assessed the European Central Bank’s policy outlook and awaited key economic data, notably the upcoming US jobs and CPI reports. The ECB kept interest rates unchanged at last week’s meeting and reaffirmed that inflation is projected to return sustainably to its 2% medium-term target. President Christine Lagarde adopted a balanced tone, describing the euro area’s inflation outlook as being in a “good place” and playing down concerns over the euro’s recent appreciation. She also cautioned that economic data could be volatile in the coming months and should not be interpreted in isolation when guiding policy decisions. Investors additionally absorbed news that Bank of France Governor François Villeroy de Galhau will step down on June 1, 2026, before the scheduled conclusion of his mandate in autumn 2027.