A Societe Generale rates strategist says persistent uncertainty could shift the
French government bond (OAT) market’s dominant holder base from foreign to
domestic investors. Spreads are expected to widen but with limits: investors may
underweight French assets yet are unlikely to fully exit OATs. The case for
further rate hikes remain unresolved; sustained inflation risk means central
banks could need to tighten again if price pressures re‑emerge.
