FX.co ★ France’s OAT Yield Retreats to 3.75%

The yield on France’s 10‑year OAT retreated to 3.75%, easing from an earlier peak of 3.87%—its highest level since July 2009. The move followed an initial market reaction to President Trump’s decision to delay planned strikes on Iran by five days, a pause he linked to “very good and productive” talks with Tehran. This narrative was challenged by Iran’s Fars News Agency, which insisted no negotiations had taken place with the United States and claimed instead that Trump stepped back only after Iran threatened to target all power plants in West Asia. Despite the diplomatic uncertainty, traders still expect at least three ECB rate hikes this year. That view is underpinned by the central bank’s decision last week to leave interest rates unchanged while raising its inflation projections and cutting its growth outlook, citing mounting risks from the conflict in the Middle East and rising energy prices.