French bonds demonstrated resilience on Thursday, maintaining gains from the previous day amid optimism that political leaders could avert a snap election and reach a budget agreement. Recent discussions involved caretaker Prime Minister Sebastien Lecornu, who resigned earlier in the week after failing to address France's budget concerns.

President Emmanuel Macron indicated he would appoint a new prime minister within 48 hours and expressed confidence that most lawmakers opposed early elections. However, economists and investors remain cautious about the country's escalating budget deficit and its potential long-term implications.

The financial market saw France's 10-year bond yield stabilize despite initial fluctuations following Lecornu's resignation. The yield's steadiness came as the

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