Bund Yields Post First Weekly Rise in a Month

2026-07-03 14:51 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield rose to 2.93%, marking its first weekly increase since early June with a nearly 9 bp rise.

Traders adjusted positions following the initial drop in yields after the US-Iran deal, while rising long-term yields in Japan, driven by concerns over increased spending, also pushed German yields higher.

European bond yields remain well below the multi-year peaks seen in May, as falling crude prices, softer-than-expected inflation, and dovish comments from ECB President Christine Lagarde led markets to scale back bets on a third ECB rate hike this year.

Money markets still view a second hike as more likely than not.

June’s inflation data undershot expectations, with headline inflation easing to 2.8% and core inflation slowing to 2.4%.

At the ECB’s Sintra Forum, Lagarde noted that risks to euro-area inflation and growth had become more balanced.

Meanwhile, a weaker-than-expected US jobs report further dampened expectations for a near-term Federal Reserve rate hike.



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Bund Yields Post First Weekly Rise in a Month
Germany’s 10-year Bund yield rose to 2.93%, marking its first weekly increase since early June with a nearly 9 bp rise. Traders adjusted positions following the initial drop in yields after the US-Iran deal, while rising long-term yields in Japan, driven by concerns over increased spending, also pushed German yields higher. European bond yields remain well below the multi-year peaks seen in May, as falling crude prices, softer-than-expected inflation, and dovish comments from ECB President Christine Lagarde led markets to scale back bets on a third ECB rate hike this year. Money markets still view a second hike as more likely than not. June’s inflation data undershot expectations, with headline inflation easing to 2.8% and core inflation slowing to 2.4%. At the ECB’s Sintra Forum, Lagarde noted that risks to euro-area inflation and growth had become more balanced. Meanwhile, a weaker-than-expected US jobs report further dampened expectations for a near-term Federal Reserve rate hike.
2026-07-03
Bund Yield Holds Just Above 2.9%
Germany's 10-year Bund yield held just above 2.9%, 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