FX.co ★ Germany’s 10-Year Bund Yield Edges Lower Ahead of Key Data

Germany's 10-year Bund yield saw a slight decline to 2.88% as investors braced for a series of pivotal economic data releases from both Europe and the United States. Meanwhile, geopolitical tensions increased over the weekend due to US military actions in Venezuela and the capture of President Nicolas Maduro, which contributed to a slight rise in demand for safe-haven assets. Investors in Europe are particularly focused on the preliminary inflation data for the Eurozone for December, while in the US, the jobs report is under scrutiny for indications of the Federal Reserve's future policy direction. Despite this minor decrease, the Bund yield remains close to its peak observed in March, signaling ongoing concerns about this year's substantial debt issuance, the effects of German fiscal stimulus, and ongoing geopolitical uncertainties. With the European Central Bank's operations taken into account, private investors are anticipated to take on a record net debt supply of €234 billion in 2026. Furthermore, Germany is set to introduce a new 20-year bond, with anticipated demand bolstered by structural changes in the Dutch pension system.