4 August 2025, 15:23 Germany: Bund Yields Steady as Markets Weigh Diverging US and Eurozone Signals.
Germany’s 10-year Bund yield held steady around 2.7%, after falling 3.9 basis points last week - its sharpest weekly drop since late May. Investors are weighing the implications of weaker-than-expected US jobs data and firmer Eurozone inflation on future monetary policy paths. The US economy added fewer jobs than forecast in July, and prior months saw significant downward revisions, prompting President Trump to dismiss a top Labor Department official. In contrast, Eurozone inflation came in slightly stronger than expected, holding at 2.0% in July versus a 1.9% forecast. Markets are now pricing in two more Federal Reserve rate cuts this year, beginning in September, while the European Central Bank is expected to keep rates unchanged for the time being.
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