France: 10-Year OAT Hits Highest Since 2011.

France’s 10-year OAT yield climbed to 3.6%, extending last week’s gains to reach its highest level since November 2011, as the European Central Bank’s hawkish stance and concerns over the country’s public finances weighed on sentiment. Last week, the ECB left interest rates unchanged for a fourth consecutive meeting and indicated that borrowing costs are likely to remain at current levels for some time, noting that the eurozone has weathered US tariffs better than expected. Meanwhile, the Bank of France revised up its GDP forecasts, projecting growth of 0.9% in 2025 (from 0.7%) and 1% in 2026 (from 0.9%), while keeping inflation moderate. On the fiscal front, lawmakers failed on Friday to approve the 2026 budget in joint committee talks, forcing the government to pursue emergency legislation to roll over the 2025 budget. Prime Minister Sebastien Lecornu expressed regret that parliament would be unable to vote on the budget before December 31.