FX.co ★ France 10-Year OAT Yields Stabilize as Inflation Eases

France's 10-year OAT yield remained stable at approximately 3.6% as investors processed the latest European inflation statistics. Preliminary data revealed that the EU-harmonized consumer price index for France, an essential indicator for the European Central Bank, increased by 0.7% on a year-over-year basis. This represents the weakest rate since May and falls short of the anticipated 0.8%. Concurrently, regional German CPI data suggested a deceleration in inflationary pressures within Europe's largest economy. Looking ahead to 2026, market players are gearing up for unprecedented borrowing levels, with the French treasury set to issue €310 billion in debt. The government is starting the year without a completely approved budget, as lawmakers were unable to pass the finance bill for 2026 in December. To ensure continuity in state funding, authorities have resorted to a special emergency budget law to temporarily extend the previous year's budget until the new legislation is enacted.