France’s 10-Year OAT Yield Steady at Lowest Since July
2026-02-27 11:07
By
Joana Ferreira
1 min. read
France’s 10-year OAT yield held at 3.25%, its lowest level since July 2025, as investors assessed recent inflation figures and their implications for ECB policy.
OATs have outperformed in recent months, bolstered by the approval of France’s 2026 budget earlier this year.
France’s EU-harmonized index accelerated to 1.1% in February from 0.4% in January, above the 0.7% forecast, while Spain’s HICP rose 2.5%, exceeding both January’s 2.4% and market expectations of 2.3%.
Meanwhile, Germany’s rate slowed to 2.0% in February, coming in just below the 2.1%.
Money markets currently assign only a 30% chance of an ECB rate cut by December.
Speaking to the European Parliament on Thursday, ECB President Christine Lagarde said headline inflation is expected to converge toward the 2% target over the medium term, with food inflation projected slightly above 2% later this year.
She added that the ECB will monitor currency movements but does not plan direct intervention in foreign exchange markets.