Euro Zone Bonds Steady Amid Geopolitical Tensions and Gold Drop

Euro zone government bonds remained stable on Wednesday despite geopolitical uncertainty and a sharp decline in gold prices. French bonds stayed within their recent range ahead of a credit rating review. Meanwhile, the ECB is expected to maintain its monetary policy at next week's meeting.

Euro zone government bonds maintained their stability on Wednesday, despite a steep drop in gold prices and increasing geopolitical uncertainties. French bonds remained within their recent range ahead of a key credit rating review due this week.

The planned summit between U.S. President Donald Trump and Russian President Vladimir Putin has been postponed, after Moscow turned down a proposed immediate ceasefire in Ukraine. Meanwhile, U.S. officials have intensified pressure on Hamas to disarm, aiming to bolster a fragile truce in Gaza.

German 10-year Bund yields held steady at 2.55%, while French bonds hovered around 3.35%, a level they've maintained for over a week. The European Central Bank is not expected to alter its monetary policy at next week's meeting, while the Bank of England may cut rates following unexpectedly low inflation figures.

(With inputs from agencies.)