FX.co ★ French OAT Yields Ease Slightly but Hover Near 14-Year High

France’s 10-year OAT yield slipped back below 3.6%, remaining just shy of Friday’s 14-year high of 3.67%, as investors adopted a cautious stance ahead of a raft of major central bank decisions. Persistently rising oil prices, driven by the escalating US–Israeli confrontation with Iran, continue to stoke inflation worries. Markets are now factoring in a more restrictive policy path from the European Central Bank by year-end, with money markets fully pricing in a rate hike by July and assigning an 85% probability to a second increase by December. This week, the ECB, the Federal Reserve, and the Bank of England are all expected to keep interest rates on hold, while investors scrutinize their communications for clues on how policymakers intend to cushion the economic fallout from the ongoing conflict.