Germany’s 10-year Bund yield hovered around 2.55%, near its lowest level since late June, as global bond investors awaited delayed US inflation data due on Friday amid mounting expectations for interest rate cuts, particularly from the Federal Reserve and the Bank of England. The Fed is set to meet next week, with markets almost fully pricing in a 25bps rate cut, followed by another move in December. Similarly, expectations are building that the Bank of England could begin lowering borrowing costs in the coming months, as inflation shows signs of having peaked and the labor market continues to cool. In the euro area, inflation has edged closer to the European Central Bank’s 2% target, while growth remains modest but resilient. ECB Vice President Luis de Guindos echoed President Christine Lagarde’s recent remarks, noting satisfaction with current policy settings and indicating little need for near-term action. Markets currently expect the ECB to begin cutting rates only in July 2026.