FX.co ★ France’s 10-Year OAT Yields Near Recent Highs Amid Global and Domestic Pressures

France's 10-year OAT yield is nearing 3.6%, close to its highest point since January 6, as investors respond to a combination of geopolitical and domestic factors. Rising yields on Japanese government bonds are exerting global market pressure. Meanwhile, US President Donald Trump has intensified tensions regarding Greenland, threatening tariffs on European nations and alluding to possible military actions. He also cautioned about imposing 200% tariffs on French wine and champagne following President Macron's decision not to join the proposed "Global Peace Committee." On the domestic front, French Prime Minister Sébastien Lecornu has announced his intention to invoke Article 49.3 of the constitution to pass the 2026 budget without a parliamentary vote, asserting that he has enough backing to withstand any possible no-confidence vote. Concurrently, Japan's fiscal outlook has been further destabilized by Prime Minister Sanae Takaichi's announcement of a snap election in February.