France 10Y Bond Yield Hits Near 18-year High

France 10 Year Government Bond Yield increased to 4.15%, the highest since November 2008. Over the past 4 weeks, France 10Y Bond Yield gained 17.55 basis points, and in the last 12 months, it increased 67.09 basis points.

France’s 10-year OAT yield rose above 4.10%, reaching its highest level since October 2008, amid a broader global fixed-income selloff. Rising oil prices, following the expiry of the US-Iran ceasefire and Tehran’s threat to adopt a more aggressive military stance, have revived inflation concerns and contributed to higher borrowing costs. However, France faces additional pressure from its worsening fiscal position. Interest payments reached €34.5 billion in the first half of the year, 19% higher than a year earlier, while public debt is already around 118% of GDP. Even if the government meets its target of limiting the budget deficit to about 5% of GDP this year, debt is projected to climb further in the coming years. Meanwhile, softer US economic data have reduced expectations for near-term Federal Reserve tightening, contrasting with increasingly hawkish expectations for European monetary policy.

France 10 Year Government Bond Yield increased to 4.05%, the highest since June 2009. Over the past 4 weeks, France 10Y Bond Yield gained 11.99 basis points, and in the last 12 months, it increased 55.96 basis points.