FX.co ★ German Bund Yield Remains Close to 1-Month Low

Germany's 10-year Bund yield settled at 2.6% following a turbulent Monday, remaining close to its lowest point in a month. This stability reflects investor preference for safer assets amid the uncertainty surrounding the EU's reaction to U.S. tariffs and the increasing fears of a global economic slowdown. The European Commission has proposed a zero-for-zero tariff agreement to the Trump administration in hopes of avoiding a trade war; however, this proposal was declined. In response to President Donald Trump's recent tariffs on steel and aluminum, the EU is considering implementing 25% counter-tariffs on various U.S. goods. Concurrently, expectations for additional interest rate cuts by the European Central Bank are on the rise. Traders currently anticipate a 90% likelihood of a 25-basis-point rate cut in April, with the potential for two more reductions by the end of the year, one possibly as early as June, and increasing speculation about a third rate cut.