France’s 10-year OAT yield edged lower to around 3.5%, as investors sought safe-haven assets amid renewed trade tensions sparked by fresh threats from US President Donald Trump, while also keeping a close eye on France’s domestic budget negotiations. President Trump warned he could impose additional tariffs on eight European countries, including France, unless the US is allowed to “buy” Greenland. Economists estimate that the UK and Germany, Europe’s most exposed exporters to the US, would bear the brunt of the impact. Beyond the economic fallout, analysts cautioned that any attempt to seize Greenland could inflict lasting damage on NATO. In response, the EU is weighing broad retaliatory measures, including tariffs of up to €93 billion on US goods. On the domestic front, France edged closer to a 2026 budget agreement after Prime Minister Sébastien Lecornu made concessions to secure Socialist support, though the proposal still faces an uncertain approval process in parliament.
