German 10-Year Bund Yield Nears March 2025 High

2026-02-03 09:59 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield rose to 2.89%, approaching a March 2025 peak just above 2.9%, amid a surge in debt issuance as the country plans to raise a record €512 billion this year to fund infrastructure upgrades and bolster defense spending.

Investors also weighed the potential impact of a more hawkish-than-expected Trump nomination of former Federal Reserve governor Kevin Warsh as the next Fed chair, while focusing on the upcoming European Central Bank meeting, where policymakers are expected to leave monetary policy unchanged and assess the deflationary impact of a stronger euro.

Last week, ECB policymaker Martin Kocher warned that further euro appreciation could prompt a resumption of interest-rate cuts.

The euro recently hit a 4½-year high above $1.20 following Trump’s comments that he was unconcerned about the dollar’s recent decline.

Money markets currently assign roughly a 20% probability of an ECB rate cut in September and a 30% chance of a rate hike in April 2027.



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