FX.co ★ French OAT Yield Drops to Seven-Month Low

France’s 10-year OAT yield fell toward 3.25%, its lowest level since July 2025, as escalating trade tensions fueled demand for safe-haven assets following the implementation of US President Donald Trump’s 10% global tariff. Bloomberg reported that White House officials are preparing a formal proposal that could raise the tariff rate to 15%. Trump also warned that countries attempting to “play games” with existing trade agreements could face even higher duties, after the European Parliament decided to halt progress on a trade deal with Washington until there is greater clarity from US authorities. French OATs have also outperformed in recent weeks, bolstered by the approval of the 2026 budget earlier this year. Investors are now awaiting upcoming inflation data from France for clearer indications of how euro strength may affect price pressures and shape the ECB’s policy path.