France’s 10-Year Yield Hits Highest Since 2008
2026-08-31 11:57
By
Joana Ferreira
1 min. read
France’s 10-year OAT yield rose to 4.15%, its highest level since November 2008, as higher oil prices and hawkish central-bank signals fueled expectations for higher interest rates.
Brent crude rose after the US said it had attacked an Iranian island in the Strait of Hormuz, while Tehran said it had retaliated by targeting US assets in the region.
Markets are pricing the ECB’s deposit rate at around 2.7% by December, implying roughly an 80% probability of a second rate hike following an expected move as early as September.
Meanwhile, Fed Chair Kevin Warsh warned that inflation has not slowed meaningfully and that the Fed still has “work to do,” pushing markets to price in a roughly 60% chance of a September rate hike.
On the political front, France faces a difficult budget battle in the coming months, with investors watching closely for signs that Paris can restore control over its public finances.