Germany’s 10-year Bund yield hovered just below 2.7% as investors parsed a mixed set of economic indicators for clues on the ECB’s policy trajectory. October retail sales fell 0.3%, missing expectations for a 0.2% gain and highlighting persistent weakness in domestic demand. Inflation held steady at 2.3% in November, slightly below forecasts, while the EU-harmonized rate accelerated to 2.6%, its highest since February and above the ECB’s 2% target. Taken together with ECB meeting minutes indicating no urgency to begin easing, the latest figures left market expectations unchanged, with investors still anticipating no rate adjustments through 2026. Meanwhile, lawmakers in Berlin approved Germany’s 2026 budget, ending months of political wrangling and marking a break from the long-standing “black zero” tradition as the plan leans more heavily on borrowing to fund major programs. In the US, the Federal Reserve is set to deliver a third rate cut in December.