FX.co ★ German Bund Yields Slip as Global Central Bank Decisions Near

Recent movements in the financial markets saw German 10-year Bund yields decrease to 2.68%, marking a nearly week-long low. This development comes as investors anticipate a series of policy announcements from major central banks. Notably, the U.S. Federal Reserve is projected to reduce interest rates by at least 25 basis points in its upcoming meeting on Wednesday, with expectations of further rate cuts by the end of the year. This decision aims to balance the effects of a cooling labor market against inflationary pressures driven by tariffs. Meanwhile, the Bank of England and the Bank of Japan are both predicted to maintain their current policies. In the eurozone, European Central Bank (ECB) officials have urged caution, highlighting risks stemming from tariffs, rising services inflation, food price fluctuations, and fiscal policies. In its latest meeting, the ECB chose to keep rates unchanged for the second time in a row, indicating that their cycle of rate cuts may have concluded.