Germany’s 10-year bond yield climbed to 2.75%, nearing a five-month high of 2.78% on August 15, after briefly falling when the US Fed signaled possible rate cuts. Investors are focused on rising government debt, and in Germany’s case, higher planned borrowing. Yields dropped last Friday after Fed Chair Jerome Powell hinted at a September cut, boosting US and European bonds. But they moved higher again as the ECB looks less likely to follow the Fed. The ECB has already cut rates more sharply and policymakers suggested keeping rates steady for now. President Christine Lagarde also pointed to a strong Eurozone job market. Adding to the move, German business morale in August hit its best level in 15 months, signaling resilience and reducing pressure on the ECB to cut again this year. Markets now expect no further cut in 2025 but see a possible move in early 2026.