FX.co ★ France’s OAT Yields Rise on Geopolitical and Inflation Risks

France’s 10-year OAT yield rose to 3.72% after the Easter break, remaining close to the multi‑year highs reached at the end of last month, against a backdrop of mounting tensions in the Middle East. Investors are moving cautiously, adopting a wait-and-see stance as they assess US President Donald Trump’s ultimatum to Iran to reopen the Strait of Hormuz and agree to a ceasefire or face the risk of military retaliation. His threat of large-scale strikes on Iranian infrastructure has driven energy prices higher, prompting markets to price in three interest rate hikes by the European Central Bank in 2026. The pressure on bond yields has been further intensified by recent data showing that Eurozone inflation climbed to 2.5% in March, its highest level in more than a year.