FX.co ★ German 10-Year Bond Yield Highest Since April

Germany’s 10-year Bund yield has increased to over 2.7%, nearing its peak in more than three months as investors remain vigilant regarding trade developments and their potential impact on inflation. President Donald Trump of the United States announced a 30% tariff on imports from the European Union, set to take effect on August 1st. However, he later expressed openness to engaging in negotiations. In response, the EU reiterated its dedication to achieving a trade agreement and revealed it would postpone any retaliatory measures, extending the halt on planned tariffs until early August to facilitate further discussions. Meanwhile, inflation rates in both the US and UK saw an uptick in June, causing the markets to slightly reduce their expectations for interest rate cuts by the Federal Reserve and the Bank of England. In the Eurozone, it is broadly anticipated that the European Central Bank will maintain its current rates during its upcoming meeting next week, although markets are still anticipating at least one rate cut by the end of the year.