FX.co ★ Germany’s 10-Year Bund Yield Falls to Near 3-Month Low

Germany’s 10-year Bund yield has fallen below 2.6%, marking its lowest point since July 22. This drop is attributed to the resurgence of US-China trade tensions, which have pushed investors to seek refuge in government bonds. This shift follows both countries imposing new fees on ocean shipping firms, a move prompted by President Trump's proposition of 100% tariffs on Chinese goods and China's countermeasure to restrict rare earth exports. Meanwhile, investors are closely monitoring the political climate in France, where reappointed Prime Minister Sébastien Lecornu is hastily working to submit the 2026 budget bill to parliament before the legislative review window closes. In economic news, while German investor sentiment showed improvement in October, the level of optimism was less than anticipated, reflecting a cautious market outlook.