FX.co ★ French 10-Year OAT Yield Drops on Trade Uncertainty

The yield on France’s 10-year OAT slipped below 3.3%, its lowest level since early August, as renewed uncertainty over US trade policy boosted demand for safe-haven government bonds. Over the weekend, US President Donald Trump said he would increase a temporary import tariff from 10% to 15%, after the Supreme Court blocked his broader tariff package.

In response, EU Trade Commissioner Maroš Šefčovič held talks with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick as Brussels sought clarity on Washington’s next steps. At the same time, a senior EU lawmaker urged the European Parliament to postpone a vote on legislation implementing the EU’s side of the trade agreement.

Investors now look ahead to inflation releases from Germany, France, and Spain for signals on how the stronger euro may affect price dynamics and shape the European Central Bank’s policy outlook.