Why Is France at the Centre of a Bond Market Storm?

Why is France at the centre of a bond market storm?

Recent trends show French government bonds, referred to as OAT, experiencing yields surpassing 5% amidst investor apprehension. The recent sell-off is partly due to Japanese investors transitioning from foreign bonds to focus on domestic assets. With an election looming next year, fiscal stability remains uncertain as candidates have unclear financial plans. France's deficit is at 5.

Sayonara, OATs: After Treasuries, Japan Now Looms Over France's Bond Rout

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Japanese Investors Pull Back From French Debt as Fiscal Risks Mount

By William Collins, consultant in stock markets – Eurasia Business News, October 5, 2026. Article no 3194 Japanese investors are reassessing their exposure to French government bonds as concerns grow over France’s deteriorating fiscal outlook, political uncertainty and rising borrowing costs. Japan held about 5.2% of France’s sovereign debt in 2025, making Japanese institutions an important source of demand for French government bonds. Any susta…