France 10Y Bond Yield Hits 29-week Low

France’s 10-year OAT yield held just above 3.25%, after sliding to its lowest level since July 2025, as investors awaited Friday’s inflation report for clues on how euro strength might affect price pressures and the European Central Bank’s policy path. OATs have outperformed recently, supported by the approval of France’s 2026 budget earlier this year. Addressing a European Parliament committee, ECB President Christine Lagarde said headline inflation is expected to converge toward the 2% target over the medium term as wage growth eases, with food inflation, crucial to consumer perceptions, projected just above 2% later this year. She also reiterated that the ECB will track foreign exchange movements but will not intervene directly in currency markets. Meanwhile, investors also weighed US President Donald Trump’s new 10% global tariffs and a third round of US-Iran nuclear talks in Geneva, amid rising tensions in the Middle East.

France 10 Year Government Bond Yield decreased to 3.26%, the lowest since August 2025. Over the past 4 weeks, France 10Y Bond Yield lost 17.55 basis points, and in the last 12 months, it increased 10.90 basis points.

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.