Rising Bond Yields Amid French Political Turmoil

France's 10-year bond yield hit its highest point since March amid political instability as opposition parties withdrew support from Prime Minister Francois Bayrou. Concurrently, French stock markets fell, and concerns about U.S. Federal Reserve independence contributed to volatility in global bond markets.

France's 10-year bond yield reached a significant peak on Tuesday, the highest since March, following political disarray as opposition parties refrained from supporting Prime Minister Francois Bayrou in an impending confidence vote.

This political unrest is exacerbating global bond market volatility and is raising concerns over the US Federal Reserve's independence.

Meanwhile, Germany attracted safe haven inflows, driving its 10-year yield down by 3 basis points to 2.72%, even as French bonds experienced instability marked by a yield of 3.53% earlier in trading.

(With inputs from agencies.)