The yield on Italy’s 10-year BTP hovered around 3.59%, nearing a one-week high, as political uncertainty in France reverberated across European bond markets. French President Emmanuel Macron tasked outgoing Prime Minister Sebastien Lecornu with leading final negotiations with parliamentary parties to resolve the political stalemate following his unexpected resignation on Monday. Domestically, Prime Minister Giorgia Meloni’s renewed push for constitutional reform to allow direct elections of the prime minister has added to investor concerns about Italy’s fiscal outlook and banking sector stability. Meanwhile, Italy has formally appealed to the United States to reconsider its proposed 107% tariff on pasta imports, warning that the measure could significantly impact one of the country’s key export industries.