German Bund Yields Hold Near Two-Month Low

2026-02-18 09:39 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield stayed below 2.75%, close to Monday’s two-and-a-half month low of 2.725%, as investors digested reports that Christine Lagarde may step down early as president of the European Central Bank.

The Financial Times reported that Lagarde is considering leaving before France’s 2027 presidential election, though no timing has been finalized.

This scenario could leave French President Emmanuel Macron, barred from a third term, and German Chancellor Friedrich Merz as key influencers in selecting her successor.

European bond yields have also been pressured lower by moves in US Treasury yields, following softer-than-expected US inflation data on Friday and market concerns over potential AI-related disruptions in equities, which have increased demand for government bonds.



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