FX.co ★ France OATs Near September Peak

France's 10-year OAT yield is currently around 3.57%, close to its highest since September, as traders assess the global monetary policy landscape. The Federal Reserve implemented the anticipated 25 basis points rate cut in its December meeting and indicated a further reduction in 2026, providing investors with confidence that a more hawkish approach is not being adopted by policymakers. In Europe, the spotlight is on the upcoming ECB meeting next week. Markets anticipate that rates will remain unchanged for the fourth consecutive session, following hawkish cues from officials and stronger-than-expected economic indicators. Traders are also calculating a roughly 40% chance of a 25 basis points rate hike by the end of next year. In France, the Bank of France is set to slightly raise its GDP forecasts for 2025 and 2026, with updated figures expected on December 19. Regarding the national budget, the National Assembly has narrowly passed the 2026 social security budget, though it still awaits approval from the Senate and a joint committee's agreement.