Germany’s 10-year Bund yield rose to 2.58% after touching a three-month low of 2.56% on Wednesday, as investors reacted to easing political tensions in neighboring France following the government’s survival of a no-confidence vote. At the same time, expectations of US interest rate cuts and renewed US-China trade tensions continued to shape global sentiment. Fed Chair Jerome Powell highlighted labor market weakness, and the Fed’s Beige Book confirmed a further slowdown in the US economy, reinforcing expectations of another rate cut this month. On the trade front, China’s expansion of rare earth export controls and Trump’s threats of 100% tariffs on Chinese goods heightened tensions, though Presidents Trump and Xi Jinping are still expected to meet in South Korea later this month.