2026.10.2310:17:39UTC+00Bund Yields Near Two-Month Lows

Germany’s 10-year Bund yield slipped to around 3.34%, its lowest level since August 31, as investors moved into safe-haven assets amid growing fiscal concerns and political uncertainty in France and other highly indebted eurozone economies.

At the same time, the latest PMI data showed that eurozone private-sector activity slowed to a four-month low in October, weighed down by rising energy costs, higher interest rates, and a renewed downturn in France. Consumer confidence also deteriorated more than anticipated.

French government bonds remained under pronounced pressure, with the yield spread between French OATs and German Bunds widening to about 170 basis points — the highest level since the eurozone sovereign debt crisis.

Looking ahead, further demonstrations are expected across the region over the weekend, while investors await next week’s inflation figures and the ECB’s policy meeting, at which policymakers are widely expected to keep interest rates on hold.