Italy’s 10-year government bond yield stayed above 3.6%, near its highest level since May 2025, tracking gains in European peers amid escalating political turmoil in France ahead of a confidence vote on September 8. Broader concerns over elevated government debt also pressured European bonds, as investors looked to upcoming inflation data and remarks from European Central Bank officials for signals on potential rate cuts. Across the Atlantic, focus turns to US jobs data this week, with markets increasingly pricing in a Fed rate cut later this month. Investors are also closely following Fed Governor Lisa Cook’s legal fight to block her dismissal by President Trump.