France government bond yields rise above 4%

French government bond yields have seen a significant increase. The yield on the 10-year French OAT (Obligation Assimilable du Trésor) rose from 3.90% a month ago to approximately 4.34%.

Recent auctions show that debt maturing in May 2036 yielded an average of 4.19%, while debt maturing in May 2046 reached an average yield of 4.74%. This rise is attributed to central banks gradually withdrawing their massive support for bond markets, allowing the market to return to normal functioning driven by liquidity needs.

While the rising cost of public debt raises concerns regarding fiscal balance, the higher rates are making government bonds an attractive source of yield for private savers and investors.