French OAT Yields Steady Ahead of Inflation Data
2026-02-26 09:49
By
Joana Ferreira
1 min. read
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.