German Bund Yields Steady Near Two-Week High

2025-09-23 10:06 By Joana Ferreira 1 min. read

German 10-year Bund yields held at 2.74%, close to their highest level since September 3, as investors processed mixed PMI data and fiscal developments.

The German composite PMI rose to 52.4 in September, well above the consensus estimate of 50.7, indicating the fastest private-sector growth since May 2024, driven primarily by services.

However, manufacturing contracted more sharply than expected.

Yields have also been supported by Germany’s announcement of a €15 billion increase in Q4 bond issuance compared with its December forecast, reflecting higher planned spending on infrastructure and defense.

Earlier this month, the ECB signaled that its rate-cutting cycle may be over, citing persistent inflation risks from tariffs, services, food prices, and fiscal policy.



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