FX.co ★ French Bond Yields Rise Ahead of Central Bank Decisions

France’s 10-year OAT yield rose to 4.95%, edging back toward the 5% level briefly surpassed last week, as oil prices rebounded on renewed supply concerns and investors positioned themselves ahead of a string of major central bank decisions. French government bonds have faced mounting pressure in recent weeks, with 10-year yields climbing to their highest levels in more than two decades. Investor sentiment has been dampened by worries over France’s fiscal outlook in the run-up to next year’s presidential election, while episodes of civil unrest have further strained President Emmanuel Macron’s administration. At the same time, market attention has shifted to forthcoming monetary policy decisions by the European Central Bank and the US Federal Reserve. Both institutions are widely expected to leave interest rates unchanged this week, putting the emphasis on their forward guidance for clues on the future path of monetary policy.