Bund Yields Little-Changed Ahead of ECB Decision

2026-02-05 09:29 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield was little changed at 2.87%, hovering near the March 2025 peak just above 2.9%, as investors awaited the ECB’s policy decision later today and digested prospects of heavy debt issuance.

Germany plans to raise a record €512 billion this year to finance infrastructure upgrades and increased defense spending.

The ECB is widely expected to leave interest rates unchanged for a fifth straight meeting, with policymakers likely focusing on the deflationary effects of a stronger euro and low-priced Chinese imports.

ECB President Christine Lagarde is expected to reiterate that policy remains in a “good place,” with markets pricing in steady rates through 2026.

Recent data showed eurozone inflation cooled sharply in January, with headline CPI easing to 1.7%, the lowest since September 2024, and core inflation unexpectedly falling to 2.2%, its lowest level since October 2021.



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