Germany’s 10-year Bund yield rose above 2.65%, revisiting its highest level since October 9, as investors assessed fresh data and its implications for monetary policy from both the ECB and the Federal Reserve. The ECB’s wage tracker, closely aligned with its indicator of negotiated wages, showed average pay growth slowing to 3.0% in 2025 from 4.9% in 2024, and further to 2.2% by Q3 2026, consistent with the ECB’s 2% inflation target. The data reinforced expectations that the central bank will keep rates unchanged for an extended period. Meanwhile, in Germany, factory orders rebounded more than expected in September, and private sector activity grew in October at the fastest pace since May 2023, signaling a tentative recovery in Europe’s largest economy. Across the Atlantic, US Treasury yields also climbed as traders pared back bets on further Fed rate cuts, following Chair Powell’s hawkish comments and stronger-than-expected readings for ADP employment and ISM services activity.