France 10Y Bond Yield Hits 4-week High

France’s 10-year OAT yield climbed to 3.55%, its highest level since January 6, and is on track for a 32-basis-point weekly rise, as investors assessed rising inflation risks tied to the escalating Middle East conflict. The intensifying regional tensions have heightened concerns over potential disruptions to global crude oil supplies, driving energy prices higher and threatening to keep inflation elevated across Europe. This has strengthened expectations that the European Central Bank may maintain a tighter monetary policy stance. Several policymakers warned on Thursday that a prolonged war in Iran involving additional countries could push eurozone inflation higher while weighing on economic growth. Money markets currently assign roughly a 55% probability of a July rate hike and an 85% chance of another increase by December.

France 10 Year Government Bond Yield increased to 3.46%, the highest since February 2026. Over the past 4 weeks, France 10Y Bond Yield gained 1.37 basis points, and in the last 12 months, it decreased 10.50 basis points.

France’s 10-year OAT yield climbed back above 3.4%, reaching its highest level since February 9, as investors shifted focus back to inflation risks amid the intensifying Middle East conflict. The crisis has escalated sharply, with reports that a US submarine sank an Iranian warship near Sri Lanka and that NATO air defenses intercepted an Iranian ballistic missile aimed at Turkey. The resulting surge in energy prices is expected to keep inflationary pressures elevated across Europe, supporting expectations of a continued hawkish stance from the European Central Bank. February data reinforced these concerns, with euro area annual inflation at 1.9% and core inflation at 2.4%, both surpassing forecasts. Reflecting this shift, markets now price in roughly a 40% chance of an ECB rate hike by year-end, reversing last week’s similar odds for a rate cut, and see about a 60% probability of a hike by June 2027.