FX.co ★ German 10-Year Bund Yield at Over 3-Month High

Germany's 10-year Bund yield surged past 2.7%, reaching its highest point in over three months, as investors grappled with escalated trade tensions. This follows U.S. President Trump's declaration of a 30% tariff on European Union imports set to take effect on August 1. President Trump further indicated that the rate could be heightened if the EU retaliates. In a strategic response, the EU announced it would delay any immediate countermeasures and instead seek a negotiated resolution. The bloc has postponed its planned retaliatory tariffs until early August to facilitate continued discussions. Meanwhile, the European Commission emphasized its readiness to defend EU interests and is reportedly fortifying alliances with other nations impacted by the U.S. tariffs, including Canada and Japan. On the monetary policy arena, the European Central Bank is largely anticipated to maintain steady interest rates at its upcoming meeting, although market indicators suggest at least one rate cut may occur before the year's end.