Global Bond Yields Near Multi-Year Highs Amid Fiscal Concerns

Global government bond markets showed cautious stability amid ongoing fiscal concerns in major economies. Euro zone government bond yields eased slightly after a turbulent week, with Germany's 10-year Bund yield retreating from recent highs and France facing political uncertainty due to an upcoming no-confidence vote. Investors remain wary of rising public debt and increased bond supply in Europe, particularly with Germany ramping up fiscal spending and France's potential government collapse impacting budget plans. In the UK, borrowing costs hit multi-year highs, reflecting worries over fiscal health and prompting investors to closely watch Bank of England developments. Meanwhile, Japan's long-term bond yields reached record highs amid political uncertainty, contributing to global borrowing cost pressures. Despite these challenges, U.S. Treasury yields have stabilized somewhat, with markets closely watching upcoming U.S. labor data, which could influence Federal Reserve interest rate policies and global financial conditions.