FX.co ★ German Bund Yields Dip as Markets Focus on US-China Talks, ECB Signals

The yield on the German 10-year Bund has decreased to approximately 2.51%, following a rise of 5.4 basis points last week. This change comes as investors focus on the ongoing trade discussions between the United States and China and anticipate insights from European Central Bank (ECB) officials regarding future policy directions. Today, U.S. and Chinese representatives convene in London to expand upon the preliminary agreement established last month in Geneva, subsequent to a recent phone conversation between Presidents Trump and Xi Jinping. On the monetary side, the ECB recently reduced interest rates by 25 basis points, bringing borrowing costs to their lowest level since November 2022, and adjusted their inflation projections for 2025 and 2026 downward. Nevertheless, the ECB indicated that it may be nearing the conclusion of its current easing cycle, contradicting previous market expectations.