European Bond Market Shifts as Investors Seek Safe Havens

Traders are dumping bonds from riskier European issuers while piling into Germany, driving the 10-year German Bund yield down 17 basis points last week. The divergence highlights a widening fiscal divide across European debt markets, with France bearing the brunt of the selloff. Investors are reassessing sovereign risk as mounting budget deficits force governments to borrow heavily against a backdrop of political uncertainty.