FX.co ★ German Bund Yields Steady as Markets Brace for Central Bank Moves

The yield on Germany's 10-year Bund remained around 2.5% as investors maintained a cautious stance ahead of a crucial week for global monetary policy decisions anticipated from both the U.S. Federal Reserve and the Bank of England. Expectations are high that the Federal Reserve will keep interest rates steady after a robust April payroll report, while the Bank of England is likely to reduce rates due to escalating concerns over the economic impact of tariffs. Meanwhile, in the Eurozone, money markets are factoring in a 60 basis point reduction in rates by the European Central Bank by year-end, with policymakers prepared to intervene if U.S. tariffs further impact growth and inflation. Eurozone inflation held at 2.2% in April, slightly exceeding the 2.1% projection, as substantial increases in services and unprocessed food prices counterbalanced a steeper decline in energy costs. Core inflation, excluding food and energy, climbed to 2.7% from 2.4%, exceeding expectations.