French OAT Yield Highest Since 2011 as ECB Turns Hawkish
2026-03-19 14:01
By
Joana Ferreira
1 min. read
France’s 10-year OAT yield climbed to 3.67%, its highest since November 2011, after the European Central Bank maintained rates but adopted a more hawkish tone.
The ECB reiterated its commitment to a 2% medium-term inflation target, cautioning that the Middle East conflict has increased uncertainty, boosting inflation risks while hurting economic growth.
The bank revised up its 2026 inflation outlook and lowered growth forecasts, pointing to the war’s impact on commodity prices, household incomes, and confidence.
Markets now expect 60 basis points of ECB tightening this year, implying at least two quarter-point rate hikes.