Euro Zone Bond Yields Stabilize Amid Political Uncertainty in France and Japan

Euro zone bond yields recorded a slight decrease on Wednesday, reflecting a shift in investor sentiment following a turbulent start to the week. The decline was primarily influenced by political developments in France and Japan, which had previously driven yields upward across global markets.

France's 10-year bond yield dipped by nearly 2 basis points to 3.55%, amid political chaos stemming from the resignation of Prime Minister Sebastien Lecornu, the country's fifth leader in under two years. This political instability has now heightened calls for President Emmanuel Macron to resign or call an early parliamentary election.

In Germany, industrial output plunged more than analysts had anticipated in August, largely due to a steep fall in car production. Meanwhile, Japanese bonds steadied after recent fluctuations, as questions remain regarding the future of the nation's fiscal policy.

(With inputs from agencies.)