The yield on France's benchmark 10-year bond was 2 basis points higher at 3.4755% Tuesday morning, reflecting nervousness over the latest dose of political end economic uncertainty from Paris.Bayrou will hand his resignation letter to French President Emmanuel Macron on Tuesday,

Political uncertainty in France with the collapse of Bayrou government

The root of the latest expected government collapse was Macron's stunning decision to dissolve the National Assembly in June 2024.

President Emmanuel Macron is expected to appoint a new prime minister, rejecting calls for elections or his resignation.

Legislators toppled France's government in a confidence vote, a new crisis for Europe's second-largest economy. Prime Minister François Bayrou was ousted overwhelmingly in a 364-194 vote against him.

France coach Didier Deschamps has defended his decision to play Ousmane Dembélé and Désiré Doué in a recent World Cup qualifier where both Paris Saint-Germain stars were injured. They are expected to be out for several weeks and likely to miss titleholder PSG's first two matches of the Champions League,