France’s 10-year OAT yield hovered around 3.45% as investors weighed the European Central Bank’s policy stance and awaited key economic releases, particularly the upcoming US jobs report and CPI data. At its meeting last week, the ECB left interest rates unchanged and reiterated that inflation is expected to return sustainably to its 2% medium-term target.
ECB President Christine Lagarde struck a balanced tone, characterizing the euro area’s inflation outlook as being in a “good place” and downplaying worries about the recent appreciation of the euro. She also warned that economic data could be volatile in the months ahead and should not be viewed in isolation when shaping policy decisions.
Markets also reacted to news that Bank of France Governor François Villeroy de Galhau will step down on June 1, 2026, ahead of the scheduled end of his mandate in autumn 2027.
