European bank shares fall as bond yields surge, spreads widen

European bank shares experienced a significant decline, with stocks sinking toward their lowest levels since July. Major institutions, including Societe Generale SA and Deutsche Bank AG, saw shares tumble by more than 5%. This selloff was driven by mounting fears regarding political turmoil, which caused bond yields to surge and spreads to widen. The downward trend in the banking sector reflects broader market instability as investors react to the falling value of bonds across the region.