France's Bond Strategy: Stability Amidst Financial Uncertainty

France is maintaining its 2026 borrowing plans, with potential adjustments based on the 2026 budget law. The Agence France Tresor plans to issue €310 billion in bonds next year. New benchmark bonds and possible green OATs are considered. Emergency legislation extends 2025 financial measures into 2026.

France has announced it will keep its borrowing plans for 2026 unchanged, according to the public debt management agency, Agence France Tresor. In its year-end update, the agency stated that while the current plan anticipates issuing €310 billion in medium and long-term bonds next year, adjustments may be possible depending on the 2026 budget legislation.

AFT detailed that it aims to launch one 3-year, one 5- or 6-year, and one new 10-year bond through auction. Furthermore, considerations are being made for introducing a new 20-year and 30-year benchmark bond via bank syndication, all contingent on evolving market conditions.

Additionally, in the realm of inflation-linked securities, the agency is contemplating a new 10-year bond pegged to eurozone inflation, should demand exist. This comes as French lawmakers passed emergency legislation to maintain financial continuity into 2026 despite a divided parliament delaying full budget approval.