German 10-Year Bund Yield Tops 2.7% as Eurozone Inflation Rises

2025-10-01 09:23 By Joana Ferreira 1 min. read

The yield on the German 10-year Bund climbed above 2.7% after Eurostat data confirmed an acceleration in Eurozone inflation in September, reinforcing expectations that the European Central Bank will hold off on cutting rates for now.

Inflation rose to 2.2%, up from 2.0% in August and slightly above the ECB’s mid-point target, as energy prices declined at a slower pace.

In Germany, both national and harmonized CPI increased 2.4%, exceeding expectations.

ECB Vice President Luis de Guindos said Tuesday that “the current level of interest rates is adequate,” adding that decisions will continue to be taken “meeting by meeting.” Meanwhile, the reintroduction of deficit spending in Germany pushed the 10-year Bund yield up 35 basis points year-to-date, while its spread with the Italian BTP remained near the lowest level since 2010.



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