Germany 10Y Bond Yield Hits 7-week Low

Germany 10 Year Government Bond Yield decreased to 2.93%, the lowest since April 2026. Over the past 4 weeks, Germany 10Y Bond Yield lost 9.92 basis points, and in the last 12 months, it increased 42.25 basis points.

German 10-year Bund yields dipped toward 2.9% at the end of May, touching their lowest level since mid-March and heading for a 10-basis-point monthly decline. Cautious optimism over a potential US-Iran agreement helped ease inflation concerns, as negotiations to end the three-month war continued. Reports suggested Washington and Tehran had agreed on a 60-day ceasefire extension to allow formal talks, though President Trump has yet to approve it. Investors also analyzed fresh inflation data from Europe’s largest economies for clues on the ECB’s policy direction. German EU-harmonized inflation eased in May despite higher energy prices linked to the Iran war. Meanwhile, inflation rates in France, Spain, and Italy accelerated to multi-year highs, all exceeding the ECB’s 2% target. ECB meeting minutes revealed some policymakers would have supported an April rate hike if proposed, reinforcing expectations of a 25-basis-point increase at the June 11 meeting.

German 10-year Bund yields reversed earlier gains to fall back toward 2.96%, nearing their lowest level since April 8, as easing oil prices helped soften inflation concerns amid renewed optimism over Middle East diplomacy. According to Axios, US and Iranian negotiators have reportedly agreed on a 60-day memorandum of understanding to extend a ceasefire and begin talks on Iran’s nuclear program, although final approval from President Trump has yet to be secured. While the news lent some support to broader risk sentiment, geopolitical tensions remain elevated. Meanwhile, investors focused on the latest European Central Bank minutes, which revealed that several policymakers viewed the April decision to keep rates unchanged as a close call, with some suggesting they would have supported a hike if it had been on the table. Money markets are now nearly fully pricing in a 25-basis-point rate hike on June 11, with at least one additional increase expected by year-end.