French OAT Yields Pull Back from Peaks After Turbulent Month

2026-09-30 10:08 By Joana Ferreira 1 min. read

France’s 10-year OAT yield fell below 4.8% after reaching its highest level since July 2008, as markets became more cautious about further central bank rate hikes.

Still, yields rose 60 bps in September, their biggest monthly increase since December 2022, as concerns over France’s public finances intensified, with a large primary deficit and a fragmented parliament complicating efforts to consolidate the budget.

Higher energy costs and inflation concerns, along with expectations that the AI boom could support growth, also reinforced bets on higher-for-longer interest rates.

Sentiment improved on Wednesday, however, as central bankers pushed back against expectations of rapid tightening.

ECB official Peter Kazimir said the central bank has time to keep policy flexible after two rate hikes this year, echoing President Christine Lagarde’s comments earlier in the week.

In the US, Fed’s John Williams similarly said there was time to assess incoming data before raising rates again.



News Stream
French OAT Yields Pull Back from Peaks After Turbulent Month
France’s 10-year OAT yield fell below 4.8% after reaching its highest level since July 2008, as markets became more cautious about further central bank rate hikes. Still, yields rose 60 bps in September, their biggest monthly increase since December 2022, as concerns over France’s public finances intensified, with a large primary deficit and a fragmented parliament complicating efforts to consolidate the budget. Higher energy costs and inflation concerns, along with expectations that the AI boom could support growth, also reinforced bets on higher-for-longer interest rates. Sentiment improved on Wednesday, however, as central bankers pushed back against expectations of rapid tightening. ECB official Peter Kazimir said the central bank has time to keep policy flexible after two rate hikes this year, echoing President Christine Lagarde’s comments earlier in the week. In the US, Fed’s John Williams similarly said there was time to assess incoming data before raising rates again.
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