French Bond Yields Near 14-Year High on Rate Hike Bets

2026-03-16 08:45 By Joana Ferreira 1 min. read

France’s 10-year OAT yield hovered around 3.6%, close to its highest level since November 2011, as escalating Middle East tensions fueled inflation fears and strengthened expectations of further European Central Bank tightening ahead of a week crowded with global central bank meetings.

Oil prices remained above $100 per barrel, rising more than 40% this month, after Iran halted shipments through the Strait of Hormuz in response to US-Israeli air strikes.

Israeli officials warned the conflict could persist for “several more long weeks,” while US President Donald Trump said Tehran is “not ready” to reach a deal.

Major central banks, including the European Central Bank and the Federal Reserve, are expected to keep interest rates unchanged this week, while traders are watching closely for guidance on how policymakers may respond to the conflict’s economic impact.

Money markets fully price in an ECB rate hike by July, with roughly an 85% chance of a second increase by year-end.



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France 10-Year Bond Yield Below 3.7%
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