Germany 10Y Bond Yield Hits 12-week Low

Germany 10 Year Government Bond Yield decreased to 2.70%, the lowest since November 2025. Over the past 4 weeks, Germany 10Y Bond Yield lost 17.41 basis points, and in the last 12 months, it increased 28.37 basis points.

Germany’s 10-year Bund yield stabilized just above 2.7%, following a recent slide to its lowest level since late November, as investors awaited Friday’s inflation data for guidance on how euro strength could impact price pressures and the European Central Bank’s policy outlook. Speaking to a European Parliament committee on Thursday, ECB President Christine Lagarde emphasized that headline inflation is expected to converge to the 2% target over the medium term as wage growth eases, while food inflation, key to consumers’ perception of price stability, is projected to settle just above 2% later this year. She also emphasized that the ECB will monitor foreign exchange movements but will not directly intervene in currency markets. Elsewhere, investors continued to assess the implications of US President Donald Trump’s new 10% global tariffs and a third round of US-Iran nuclear talks in Geneva, amid rising Middle East 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.