French Bond Yields Ease

2026-11-12 09:39 By Joana Ferreira 1 min. read

France’s 10-year OAT yield edged lower toward 4.75%, as investors paused following a sharp rise in inflation concerns and interest rate expectations across the US and Europe earlier in the week.

Stronger-than-expected US inflation data pushed Treasury yields higher and strengthened bets on further Fed rate hikes, with the sell-off spreading to European bond markets before stabilizing.

Meanwhile, Brent crude traded around $93 a barrel, well below recent highs, while European gas prices also declined amid increased Gulf supplies and easing concerns over a renewed escalation in the conflict.

On the monetary policy front, markets are pricing in an 80% chance of a 25-basis-point ECB rate hike in December, with two increases fully priced in by mid-2027.

In the US, persistent inflation pressures and hawkish Fed commentary have reinforced expectations of a December rate hike, while raising the possibility of a larger 50-basis-point increase.



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