France’s 10-year OAT yield climbed past 3.75%, hitting its highest since May 19, as investors reacted to rising political uncertainty and surging oil prices.
Far-right leader Marine Le Pen confirmed plans for a fourth presidential bid, despite a court ruling requiring her to wear an electronic-monitoring device after an appeals panel upheld her conviction for misusing public funds.
Polls currently place her National Rally party as the frontrunner, with its candidate expected to advance to the second-round runoff.
Meanwhile, uncertainty grows over who will emerge as the main challenger to succeed President Emmanuel Macron, who has yet to name a clear successor.
Oil prices also rose above $75 per barrel following a new exchange of strikes between the US and Iran, heightening inflation fears.
Traders are now pricing in roughly 30 basis points of additional ECB tightening this year, equivalent to at least one rate hike, potentially as early as September.