Germany’s 10-year Bund yield climbed to 2.68%, its highest level since October 9, amid optimism that the US government shutdown may soon end after the US Senate recently advanced a measure to reopen federal agencies. At the same time, investors considered ongoing concerns about Germany’s domestic economic outlook alongside mixed signals from central banks on the future of monetary policy. Recent data showed weaker-than-expected German industrial output, while the Bundesbank warned of rising financial stability risks. ECB Vice President de Guindos said in a Monday interview that policy rates are currently appropriate and emphasized the need for the ECB to remain “very prudent and cautious.” Money markets currently assign about a 40% probability of a 25bp ECB rate cut by September 2026. Across the Atlantic, expectations for a December Fed rate cut strengthened after US data showed October job losses, a sharp decline in consumer sentiment, and layoffs reaching a 20-year high.