Global investors are seeking refuge in the safety of German government bonds amid a downturn in market sentiment. European stocks opened with significant losses on Tuesday, following a sharp decline in U.S. futures on Monday, signaling a broad sell-off.

This risk aversion in the market has heightened demand for German bonds, particularly against other eurozone securities. Germany's 10-year bond yield fell by 2 basis points to 2.695%, having peaked at 2.718% on Monday. Bond yields typically fall as prices rise.

In contrast, Italy's 10-year bond yield decreased by 0.5 basis points to 3.444%, expanding the yield differential between Italian and German bonds to 74.5 basis points. Analysts point to the resolution of the U.S. government shutdown as a factor, renewing investor focus on upcoming

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