Bund Yield Holds Near Two-Week High

2026-07-02 13:50 By Joana Ferreira 1 min. read

Germany's 10-year Bund yield held above 2.9%, near a two-week high, as investors weighed weaker-than-expected US jobs data, softer Eurozone inflation, and reduced expectations for aggressive ECB rate hikes this year.

The US economy added just 57,000 jobs last month, well below forecasts, while the unemployment rate unexpectedly fell to 4.2% as many people left the labor force.

In Europe, June inflation came in below expectations, with headline inflation easing to 2.8% and core inflation slowing to 2.4%.

Speaking at the ECB's Sintra Forum, President Christine Lagarde said risks to euro-area inflation and growth had become more balanced, citing the recent decline in oil prices.

Her comments marked a shift from the ECB's rate hike three weeks earlier, when policymakers cited inflation risks stemming from the Iran conflict.

Since then, oil prices have dropped sharply on optimism over a US-Iran peace deal, with Qatar announcing that the next round of indirect talks would be scheduled soon.



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Bund Yield Holds Near Two-Week High
Germany's 10-year Bund yield held above 2.9%, near a two-week high, as investors weighed weaker-than-expected US jobs data, softer Eurozone inflation, and reduced expectations for aggressive ECB rate hikes this year. The US economy added just 57,000 jobs last month, well below forecasts, while the unemployment rate unexpectedly fell to 4.2% as many people left the labor force. In Europe, June inflation came in below expectations, with headline inflation easing to 2.8% and core inflation slowing to 2.4%. Speaking at the ECB's Sintra Forum, President Christine Lagarde said risks to euro-area inflation and growth had become more balanced, citing the recent decline in oil prices. Her comments marked a shift from the ECB's rate hike three weeks earlier, when policymakers cited inflation risks stemming from the Iran conflict. Since then, oil prices have dropped sharply on optimism over a US-Iran peace deal, with Qatar announcing that the next round of indirect talks would be scheduled soon.
2026-07-02
Bund Yields Tick Higher, but ECB Outlook Weighs
Germany’s 10-year Bund yields climbed to 2.95%, a near two-week high, tracking US Treasury yields as investors prepared for US jobs data later in the day. However, gains were limited by softer-than-expected Eurozone inflation data and reduced expectations for aggressive ECB rate hikes this year. Wednesday’s figures showed both headline and core inflation rates had fallen more than expected in June, to 2.8% and 2.4%, respectively. At the ECB’s Sintra Forum, President Christine Lagarde told CNBC that risks to eurozone inflation and growth are now more balanced than a few weeks ago, citing the recent drop in oil prices. The shift follows the ECB’s decision three weeks earlier to become the first G7 central bank to raise rates after the Iran war, driven by concerns over inflation spreading. Since then, oil prices have fallen sharply on US-Iran peace hopes, with Qatar scheduling the next indirect talks soon.
2026-07-02
German Bund Yields Rise at Start of Q3
Germany’s 10-year Bund yields climbed above 2.9%, rebounding from a four-month low and following US Treasury yields higher. This came after the latest JOLTS report revealed job openings at a two-year high, while analysts anticipate another strong June non-farm payrolls report, reinforcing expectations that the Federal Reserve will raise interest rates this year. In Europe, investors are focused on the ECB’s Sintra Forum and inflation updates from major economies. Today’s panel with ECB President Christine Lagarde and new Fed Chair Kevin Warsh is highly anticipated, as markets seek insights into economic assessments and policy directions. Recent inflation data in Europe showed easing price pressures, offering some relief to ECB policymakers. Additionally, investors are monitoring US-Iran peace talks in Qatar, hoping for progress toward a lasting ceasefire, though direct negotiations remain unlikely.
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