Germany's 10-year Bund yield fell to 3.47%, retreating from last week's 17-year high as Brent crude prices eased toward $100 a barrel. Comments from US President Trump pointing to progress in talks with China and keeping diplomacy with Iran possible have reduced fears of an imminent supply shock, while stronger regional crude flows eased pressure in physical markets. Political uncertainty increased after Germany's governing CDU recorded its worst-ever state election result, failing to win a single seat and prompting some members to call for Chancellor Friedrich Merz to step down after 16 months in office. France's public finances also face greater scrutiny after Scope Ratings downgraded the country and Morningstar DBRS moved its outlook to negative ahead of next year's presidential election.