German 10-Year Yield Rebounds as Strong US Jobs Data Curb Fed Cut Bets

2026-02-11 14:33 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield rebounded to 2.8% after briefly hitting a four-week low of 2.793%, as investors scaled back expectations for Federal Reserve rate cuts following stronger-than-expected US employment data.

US payrolls rose by 130,000 in January, the largest gain in over a year, while the unemployment rate unexpectedly fell to 4.3%, pointing to continued labor market resilience at the start of 2026.

Markets now fully price in a Fed rate cut by July instead of June, with the probability of a March move seen below 5%.

In Europe, investors also assessed signals that the European Central Bank remains largely comfortable with the euro’s recent appreciation, as well as reports that Bank of France Governor François Villeroy de Galhau, considered dovish, will step down earlier than planned.

ECB President Christine Lagarde said last week that the inflation outlook remains in a “good place,” while downplaying concerns over the strength of the single currency.



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