FX.co ★ Bund Yields Near Multi-Month High

Germany's 10-year Bund yield has climbed to 2.89%, nearing its peak level since mid-March 2025. This movement comes as investors assess the impact of the recently concluded significant EU-India trade agreement amidst growing global trade tensions. This deal, designed to invigorate markets confronted by U.S. tariffs and Chinese export restrictions, accounts for a quarter of the world's GDP and establishes a vast free trade area encompassing two billion people. This achievement follows nearly two decades of negotiations. Meanwhile, markets are also on edge due to former U.S. President Donald Trump's threat of increased tariffs on South Korean products, similar to his earlier warnings to Canada and Europe. Investors are now eagerly awaiting important economic releases, specifically Germany's flash January inflation figures and the Q4 GDP report, along with the U.S. Federal Reserve's policy statement on Wednesday, with expectations that interest rates will hold steady. Further adding to the climate of uncertainty, there is growing speculation that a more dovish figure may soon be appointed to succeed Fed Chair Jerome Powell.