Germany’s 10-year Bund yield fell to 2.66%, tracking a decline in US Treasury yields, after a weaker-than-expected US jobs report heightened concerns about labor market softness. The data showed the US economy added just 73,000 jobs in July, missing the 100,000 forecast, while May and June’s job numbers were revised sharply lower. In response, markets now assign a 75% probability to a Fed rate cut in September, up from 45% before the report. Meanwhile, expectations for further monetary easing by the ECB remain more restrained. While eurozone inflation is projected to remain above the ECB’s forecasts in the coming months, markets have still priced in a 60% chance of a 25 basis point ECB rate cut by December—up from 50% before the US data release. Recent data showed eurozone consumer inflation holding steady at 2.0% in July, slightly above the 1.9% consensus forecast. Investors also weighed the impact of newly announced US tariffs, which include a 15% duty on EU imports.