French OAT Yield Drops to Seven-Month Low

France’s 10-year OAT yield declined toward 3.25%, reaching its lowest level since July 2025, as mounting trade tensions boosted demand for safe-haven assets after US President Donald Trump’s 10% global tariff took effect. According to Bloomberg, White House officials are also preparing a formal proposal that could lift the rate to 15%, while Trump warned that countries seeking to “play games” with existing trade agreements could face steeper duties after the European Parliament decided to pause progress on a trade deal with Washington until greater clarity emerges from US authorities. French OATs have additionally outperformed in recent weeks, supported by the approval of the 2026 budget earlier this year. Investors now await upcoming inflation data from France for clearer signals on how euro strength may affect price pressures and influence the policy trajectory of the ECB.

France’s 10-year OAT yield fell further below 3.3%, reaching its lowest level since early August, as renewed uncertainty over US trade policy increased demand for safe-haven assets. The European Parliament said it had suspended ratification of the US–EU trade deal agreed last July in Scotland with US President Donald Trump, after he announced plans to lift a temporary import tariff from 10% to 15% following a ruling by the Supreme Court blocking his broader tariff measures. Uncertainty persists over whether the new 15% tariff will take effect imminently in the UK or EU, despite assurances from US Trade Representative Jamieson Greer that existing agreements with roughly 20 countries remain in place. Meanwhile, investors are now awaiting inflation data from Germany, France, and Spain for further insight into how euro strength could affect price pressures and the policy outlook of the European Central Bank.

France’s 10-year OAT yield fell below 3.3%, its lowest level since early August, as renewed uncertainty over US trade policy drove demand for safe-haven debt. Over the weekend, US President Donald Trump announced plans to raise a temporary import tariff from 10% to 15%, following a Supreme Court ruling that blocked his broader tariff measures. EU Trade Commissioner Maroš Šefcovic held talks with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick as Brussels seeks clarity on Washington’s intentions, while a senior EU lawmaker called on the European Parliament to delay a vote on legislation implementing the bloc’s side of the trade deal. Markets now turn to upcoming inflation data from Germany, France, and Spain for guidance on how euro strength could influence price pressures and the European Central Bank’s policy outlook.