Germany’s 10-year Bund yield held above 2.86%, hovering near a nine-month high as traders continued to assess the global monetary policy outlook. The Fed delivered the expected 25 bps rate cut at its December 2025 meeting and signaled one additional reduction for 2026, offering investors some reassurance that policymakers did not shift to a more hawkish stance. In Europe, attention turns to next week’s ECB meeting. Markets expect rates to be left on hold for a fourth meeting following comments from several policymakers and stronger-than-expected economic data. Traders are even pricing in roughly a 40% chance of a 25 bps rate increase by the end of next year. Euro Area inflation stood at 2.2% in November, while GDP grew 0.3% in Q3. ECB President Christine Lagarde recently noted at an FT conference that “the Eurozone area is resisting better than what we had anticipated back in April,” adding that policymakers will likely raise their growth forecasts when they meet next week.