FX.co ★ French OAT Yield Jumps to Three-Week High on Inflation Worries

France’s 10-year OAT yield advanced toward 3.4%, its highest level since February 11, as mounting tensions in the Middle East unsettled global markets and prompted investors to scale back expectations for imminent interest rate cuts by major central banks amid renewed inflation concerns. A sharp increase in natural gas and crude oil prices—driven by the formal closure of the Strait of Hormuz and the continued suspension of Qatari LNG exports—has intensified fears of disruptions to global energy supplies. Rising energy costs are expected to reinforce inflationary pressures across Europe, potentially pushing the European Central Bank toward a more hawkish policy stance. Market participants are also awaiting key Eurozone inflation figures due later today, which are likely to provide clearer indications of underlying price dynamics and the future path of monetary policy in the region.