Germany: 10-Year Bond Yield Little Changed.

The yield on Germany’s 10-year bund, seen as the benchmark for the Eurozone, has hovered around 2.6% since mid-July, as investors weighed economic, political, and monetary developments. Focus is now on Friday’s meeting between US President Donald Trump and Russian President Vladimir Putin, aimed at resolving the conflict in Ukraine, though Ukrainian President Volodymyr Zelenskyy is reportedly not expected to attend. In the US, expectations for near-term Federal Reserve rate cuts have increased following weak payrolls data and a softer ISM Services PMI. In Europe, the ECB ended its latest easing cycle in July after eight rate cuts over the past year, bringing borrowing costs to their lowest since November 2022. Nevertheless, some investors still anticipate another cut before year-end. On the macroeconomic front, euro area GDP grew 0.1% in Q2, while inflation held steady at 2% in July. Risks remain elevated as the EU braces for 15% tariffs on most European goods exported to the US.