The yield on Germany’s 10-year Bund stabilized around 2.7% as investors continued to monitor political developments in France and the US, while digesting disappointing economic data from Germany. President Emmanuel Macron is expected to appoint a new prime minister following Sebastien Lecornu’s resignation, with signs emerging that snap elections are likely to be avoided. Meanwhile, the US government shutdown is likely to continue, putting the release of key economic data - and the Fed’s policy guidance - at risk. On the data front, German exports unexpectedly declined, while imports fell more sharply than anticipated. These developments followed steep drops in both industrial output and factory orders released earlier in the week.