FX.co ★ German Bund Yield Rebounds Ahead of Key Data

The yield on Germany's 10-year Bund has climbed back to 2.5%, marking its highest point in a week, as investors turn their attention to forthcoming economic data, amidst an unusual pause in US tariff-related news. In the coming days, Europe is set to reveal crucial inflation data, notably Germany's Consumer Price Index (CPI) report on Wednesday. A result surpassing expectations could lead investors to reconsider the likelihood of the European Central Bank continuing to cut interest rates as a measure to bolster the economy. Concurrently, in the United States, the focus will lie on the upcoming Personal Consumption Expenditures (PCE) inflation and Gross Domestic Product (GDP) data, both scheduled for release on Wednesday, followed by the nonfarm payroll figures on Friday. Meanwhile, investors have reacted positively to a more diplomatic tone in US-China relations, buoyed by the Trump administration's indication of a potential reduction in tariffs and China's decision to grant exemptions for certain imports from its extensive 125% levy list.