Bund Yields Ease Ahead of US Inflation Data

2026-10-14 08:22 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield slipped to 3.45%, near its lowest level since September 9, as investors awaited US inflation data for clues on the Federal Reserve’s rate path.

September’s CPI, the final reading before the Fed’s October meeting, is expected to show annual inflation rising to 3.6%.

Bond markets have shown tentative signs of stabilization in recent days, with volatility easing following a global sell-off in late September and early October.

Concerns over surging energy prices, persistent inflation and rising borrowing costs fueled the earlier surge in yields, while fiscal pressures added to the strain on more heavily indebted countries.

Meanwhile, ECB President Christine Lagarde said elevated energy-driven inflation has yet to spread across the euro-area economy, supporting a wait-and-see approach.

However, persistent inflation surprises and the ongoing US-Iran conflict have prompted markets to price in another ECB rate hike in December, following two increases this year.



News Stream
Bund Yields Ease Ahead of US Inflation Data
Germany’s 10-year Bund yield slipped to 3.45%, near its lowest level since September 9, as investors awaited US inflation data for clues on the Federal Reserve’s rate path. September’s CPI, the final reading before the Fed’s October meeting, is expected to show annual inflation rising to 3.6%. Bond markets have shown tentative signs of stabilization in recent days, with volatility easing following a global sell-off in late September and early October. Concerns over surging energy prices, persistent inflation and rising borrowing costs fueled the earlier surge in yields, while fiscal pressures added to the strain on more heavily indebted countries. Meanwhile, ECB President Christine Lagarde said elevated energy-driven inflation has yet to spread across the euro-area economy, supporting a wait-and-see approach. However, persistent inflation surprises and the ongoing US-Iran conflict have prompted markets to price in another ECB rate hike in December, following two increases this year.
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