France 10Y Bond Yield Hits 6-week Low

France’s 10-year OAT yield edged lower to around 4.75% after Tuesday’s sharp rise, as investors struggled to find direction amid a relatively quiet Eurozone economic calendar. Brent crude prices also paused their recent decline following shipping attacks in the Strait of Hormuz, while markets continued to assess stronger-than-expected US inflation data, which reinforced expectations of further Federal Reserve tightening in December and raised the possibility of a 50-basis-point rate hike. Meanwhile, France’s ongoing political and fiscal difficulties, alongside uncertainty over the potential early departure of ECB President Christine Lagarde, continued to weigh on sentiment across European markets. On the monetary policy front, ECB Chief Economist Philip Lane signaled that another rate increase in December could be necessary, joining a growing number of policymakers advocating for a third hike this year.

France's 10-year OAT yield rebounded to 4.75%, tracking higher US Treasury yields as stronger-than-expected US inflation data and hawkish comments from Federal Reserve Governor Christopher Waller heightened expectations of further monetary tightening. Waller signaled the possibility of additional rate increases, while October's elevated inflation reinforced expectations of further Fed tightening in December, bringing a potential 50-basis-point hike into focus. Meanwhile, France's ongoing political and fiscal challenges, coupled with uncertainty surrounding ECB President Christine Lagarde's potential early departure, continued to weigh on sentiment across European bond markets. On the monetary policy front, ECB Chief Economist Philip Lane suggested that another rate increase in December may be necessary, adding to a growing number of policymakers advocating a third hike this year.

France 10 Year Government Bond Yield decreased to 4.70%, the lowest since September 2026. Over the past 4 weeks, France 10Y Bond Yield lost 19.70 basis points, and in the last 12 months, it increased 128.68 basis points.