German Bund Yield Eases as ECB Holds Rates

2026-04-30 12:58 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield fell to 3.05% at the end of April, after the European Central Bank kept interest rates unchanged as expected and oil prices pulled back from recent four-year highs.

The ECB left all options open for its June meeting and beyond, noting that while recent data aligned with its inflation outlook, upside risks to inflation and downside risks to growth have intensified.

At the press conference, ECB President Christine Lagarde said the hold was unanimous, though a hike was debated, and policymakers agreed they are "moving away" from the baseline scenario.

Money markets are pricing in around 75 basis points of hikes by year-end.

On the data front, Eurozone inflation climbed to 3% in April, the highest since September 2023 and well above the ECB’s 2% target.

Meanwhile, the bloc’s economy unexpectedly slowed in Q1, growing just 0.1%, as the Middle East conflict disrupted energy supplies.

However, Germany’s economy expanded by a faster-than-expected 0.3%.



News Stream
German Bund Yield Eases as ECB Holds Rates
Germany’s 10-year Bund yield fell to 3.05% at the end of April, after the European Central Bank kept interest rates unchanged as expected and oil prices pulled back from recent four-year highs. The ECB left all options open for its June meeting and beyond, noting that while recent data aligned with its inflation outlook, upside risks to inflation and downside risks to growth have intensified. At the press conference, ECB President Christine Lagarde said the hold was unanimous, though a hike was debated, and policymakers agreed they are "moving away" from the baseline scenario. Money markets are pricing in around 75 basis points of hikes by year-end. On the data front, Eurozone inflation climbed to 3% in April, the highest since September 2023 and well above the ECB’s 2% target. Meanwhile, the bloc’s economy unexpectedly slowed in Q1, growing just 0.1%, as the Middle East conflict disrupted energy supplies. However, Germany’s economy expanded by a faster-than-expected 0.3%.
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