UBP says French OAT-Bund spread widening weighs on European assets

By Public Technologies
  • UBP flagged easing US rate-hike fears as weak payrolls cut the implied odds of an October Fed move from 70% to below 20%.
  • Treasuries hit multi-year highs before retracing; the US 10-year touched 5.34% intraweek, the 30-year reached 5.69%.
  • Europe underperformed as France drove spread stress; the 10-year OAT-Bund spread widened to 150 bps from 85 bps in early September.
  • UBP kept zero direct French government debt exposure in euro mandates, citing limited political will to address deficits and debt.
  • FX pressure stayed on the euro; EUR/USD slipped to just above 1.12, EUR/CHF fell below 0.93 as spreads widened.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Union Bancaire Privee UBP SA published the original content used to generate this news brief on October 05, 2026, and is solely responsible for the information contained therein.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.