France’s 10-Year OAT Yield Hits Four-Month Low

2026-02-13 14:39 By Joana Ferreira 1 min. read

France’s 10-year OAT yield fell toward 3.3%, its lowest level since October 16, as investors moved into safer assets amid growing risk sentiment.

Softer-than-expected US inflation data added support to European bonds, reinforcing expectations that the Federal Reserve may have room to resume interest rate cuts.

In the euro area, market participants noted signals that the European Central Bank remains largely comfortable with the euro’s recent strength.

Attention also turned to reports that Bank of France Governor François Villeroy de Galhau, regarded as a dovish ECB voice, could step down earlier than expected.

ECB President Christine Lagarde reiterated last week that the inflation outlook is in a “good place,” while minimizing concerns over the single currency’s strength.

Money markets currently assign just a 30% probability to an ECB rate cut by December.



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