French Yields Climb on Le Pen Ruling and Oil Rise
2026-07-07 13:09
By
Joana Ferreira
1 min. read
France's 10-year OAT yield rose to 3.65%, its highest level since June 11, as investors weighed mounting political uncertainty and higher oil prices.
Far-right leader Marine Le Pen was cleared to run in the 2027 presidential election, although she will be required to wear an electronic bracelet for a year—a condition she has said could lead her to withdraw.
Polls still show the National Rally as the frontrunner, with its candidate widely expected to reach the second-round runoff, while uncertainty persists over who will emerge as the main challenger after President Emmanuel Macron, who has yet to establish a clear successor.
Meanwhile, crude oil climbed above $72 per barrel following attacks in the Strait of Hormuz, fueling inflation concerns and strengthening expectations that the ECB may keep interest rates higher for longer.
ECB policymaker Isabel Schnabel also warned that the economic impact of the Iran conflict remains significant as core inflation stays elevated.