Germany’s 10-year Bund yield stabilized around 2.65% amid concerns over the country’s economic outlook and uncertainty regarding monetary policy. On Wednesday, the German Council of Economic Experts cut its growth forecast for 2026 to 0.9%, down from 1.0% in May, more pessimistic than the government’s 1.3% estimate, following near-stagnation in 2025. The 2025 growth projection remains at a modest 0.2%, raising questions about the impact of Germany’s planned fiscal spending push. On monetary policy, money markets assign roughly a 40% probability of a 25bp ECB rate cut by September 2026, while expecting the key rate to remain at 1.97% by March 2027. Meanwhile, in the US, investors have scaled back expectations of a December Fed rate cut, with markets pricing in a near 50% chance, following the government reopening, signs of a weaker labor market, and divergent Fed official views.