German Bund Yield Eases as ECB Holds Rates

2026-02-05 13:47 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield slipped to around 2.82% after the European Central Bank kept interest rates unchanged at its first policy meeting of 2026, as widely expected, and reaffirmed that inflation should converge toward its 2% target over the medium term.

The ECB said the euro area economy remains resilient, but warned that the outlook is clouded by global trade policy uncertainty and ongoing geopolitical tensions.

At the ECB press conference, President Lagarde reiterated that both the central bank and the euro area inflation outlook are in a “good place,” while cautioning that inflation readings may fluctuate in the months ahead and stressing that policy decisions should not hinge on any single data release.

Earlier, Eurostat data showed headline inflation slowed to 1.7% year on year in January, matching expectations and marking the lowest reading since September 2024, while core inflation eased to 2.2%, slightly below forecasts and its weakest level since October 2021.



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