France 10Y Bond Yield Hits Near 18-year High

France 10 Year Government Bond Yield increased to 4.51%, the highest since September 2008. Over the past 4 weeks, France 10Y Bond Yield gained 43.58 basis points, and in the last 12 months, it increased 101.88 basis points.

France 10 Year Government Bond Yield increased to 4.28%, the highest since November 2008. Over the past 4 weeks, France 10Y Bond Yield gained 29.36 basis points, and in the last 12 months, it increased 81.13 basis points.

France’s 10-year OAT yield climbed above 4.2%, its highest level since November 2008, as investors digested fresh inflation data that strengthened expectations for another ECB rate hike this month, with the Iran war continuing to put upward pressure on prices. Eurozone inflation accelerated to 3.3% in August, its highest since September 2023 and well above the ECB’s 2% target, driven by surging energy prices. Markets now price the ECB’s deposit rate at around 2.70% by December, implying an 80% probability of a second hike following an expected September move. ECB policymakers Olli Rehn and Martin Kocher warned that prolonged conflict and rising inflation risks could require further tightening. Meanwhile, hawkish comments from Fed Chair Kevin Warsh pushed markets to price in a 68% probability of a September Fed hike.