German 10-Year Bund Yield Falls on Trade Tensions

Germany’s 10-year Bund yield extended its recent slide, falling to 2.7%, its lowest level since late November, as escalating trade uncertainty spurred demand for safe-haven assets following US President Donald Trump’s new 10% global tariff. The levy was introduced via an executive order signed last Friday, just hours after the US Supreme Court blocked several of the administration’s earlier import duties. According to Bloomberg, White House officials are drafting a formal measure that could increase the tariff to 15%. Trump also cautioned that countries attempting to “play games” with existing trade agreements could face higher duties after the European Parliament paused progress on a trade deal with Washington, saying it would wait for greater clarity from US authorities before proceeding. Investors are also looking ahead to upcoming inflation data from Germany for clearer insight into how euro strength could influence price pressures and shape the policy outlook of the ECB.

Germany’s 10-year Bund yield slipped toward 2.72%, its lowest level since late November, as renewed uncertainty over global trade policy boosted demand for safe-haven assets. The European Parliament announced it had paused ratification of the US–EU trade deal agreed last July in Scotland with US President Donald Trump, after Trump said he plans to raise a temporary import tariff from 10% to 15%. The move followed a ruling by the Supreme Court of the United States blocking his broader tariff measures. Uncertainty also remains over whether the new 15% rate will take effect imminently in the UK or EU, despite assurances from US Trade Representative Jamieson Greer that existing agreements with around 20 countries remain unchanged. Stronger-than-expected German business confidence provided some support to sentiment. Investors now look ahead to inflation data from Germany, France, and Spain for clues on how euro strength could influence price pressures and the outlook for the ECB.

Germany’s 10-year Bund yield slipped to 2.73%, its lowest level since late November, as renewed uncertainty over US trade policy fueled demand for safe-haven debt. Over the weekend, US President Donald Trump said he would raise a temporary tariff on imports from 10% to 15%, after the Supreme Court blocked his broader tariff measures on Friday. EU Trade Commissioner Maroš Šefcovic held talks with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, as Brussels seeks clarity on Washington’s plans, while the rapidly evolving situation prompted a senior lawmaker to urge the European Parliament to postpone a vote on legislation implementing the EU’s side of the deal. Elsewhere, stronger-than-expected German business confidence supported sentiment. Markets now await inflation data from Germany, France, and Spain later this week for insight into how a stronger euro could affect price pressures and the European Central Bank’s policy stance.