FX.co ★ German Bund Yields Rise at Start of Q3

Germany’s 10-year Bund yield rose back above 2.9%, rebounding from a four-month low and tracking the move higher in US Treasury yields. The shift followed the latest JOLTS report, which showed US job openings at a two-year high, and comes as analysts expect another solid June non-farm payrolls print. Together, these data points are reinforcing market expectations that the Federal Reserve will raise interest rates later this year.

In Europe, investors are closely watching the ECB’s Sintra Forum and a fresh round of inflation figures from major economies. Today’s panel featuring ECB President Christine Lagarde and new Fed Chair Kevin Warsh is in sharp focus, as markets look for signals on the economic outlook and the future path of monetary policy. Recent euro area inflation data have indicated easing price pressures, offering some relief to ECB policymakers.

At the same time, investors are also monitoring US–Iran peace talks in Qatar, hoping for movement toward a durable ceasefire, even though direct negotiations between the two sides remain unlikely.