Germany’s 10-Year Bund Yield Drops Further Below 2.7%
2026-02-27 11:02
By
Joana Ferreira
1 min. read
Germany’s 10-year Bund yield fell to 2.68%, its lowest level since late November, as investors assessed recent inflation figures and their implications for European Central Bank policy.
Germany’s EU-harmonized inflation rate slowed to 2.0% in February, coming in just below the 2.1% consensus and aligning with the ECB’s target.
Meanwhile, France’s HICP quickened to 1.1% from 0.4% in January, exceeding the 0.7% forecast.
In Spain, HICP increased to 2.5%, topping both the previous month’s 2.4% and expectations of 2.3%.
Money markets currently price in only a 30% chance of an ECB rate cut by December.
Speaking to the European Parliament on Thursday, ECB President Christine Lagarde said headline inflation is expected to approach the 2% target over the medium term, with food inflation, key to consumer perception, projected slightly above 2% later this year.
She also emphasized that the ECB will monitor currency movements but has no plans for direct intervention in foreign exchange markets.