France’s 10-year OAT yield hovered around 3.53%, rebounding from 3.48% on January 21, as investors stayed on edge amid heightened geopolitical tensions. At the World Economic Forum in Davos, US President Trump reaffirmed Washington’s interest in Greenland, stressing that the US would not use military force to acquire the island. However, prior tariff threats targeting European countries over Greenland had already rattled markets and fueled risk aversion. In response, the European Parliament’s Trade Committee indefinitely suspended approval of the US–EU trade agreement, highlighting that meaningful progress is unlikely until the US ceases such threats and adopts a cooperative stance. Domestically, France’s 2026 national budget has yet to pass a regular parliamentary vote. The government has invoked Article 49.3 of the French Constitution to push parts of the budget through and sent it to the Senate for review, leaving full approval uncertain.
