FX.co ★ France 10-Year OAT Yield Hits Lowest Since August

The yield on France’s 10-year OAT has declined to approximately 3.4%, the lowest point observed since late August. This drop is influenced by escalating political uncertainties within France alongside intensifying US-China trade tensions affecting global markets. French President Emmanuel Macron has firmly dismissed calls for his resignation, asserting that opposition parties are deliberately fostering instability as his new administration confronts two impending no-confidence motions, which could potentially dismantle it by the week’s end. In response, French authorities are rapidly working to finalize a compromise budget to ensure fiscal stability in the forthcoming days. Concurrently, international market unease is compounded by the ongoing US government shutdown and the escalating trade disputes between the United States and China, with new port fees on shipping companies scheduled for implementation starting Tuesday. Meanwhile, the European Central Bank remains guarded, indicating a likelihood of maintaining its current policy stance in the near future as it closely observes growth and inflation trends across the eurozone.