FX.co ★ German Bund Yields Rise to One-Month High

Germany's 10-year Bund yield edged closer to 2.7%, marking a new one-month high as investors assessed ongoing concerns about the domestic economic forecast alongside mixed signals from central banks regarding monetary policy direction. Recent data from Germany revealed stronger-than-anticipated rebounds in export and import activities, although industrial production fell short of expectations. Additionally, the Bundesbank issued warnings about rising risks to financial stability. Market sentiment was further influenced by remarks from ECB officials following the previous week's decision to maintain steady interest rates. François Villeroy de Galhau emphasized the necessity for the Bank to keep its options open, Joachim Nagel cautioned about inflation vigilance, and Vice President Luis de Guindos indicated that any decrease below 2% inflation would likely be temporary. Meanwhile, in the United States, uncertainty remains about a potential Federal Reserve rate cut in December after Challenger reported layoffs reaching a 20-year high in October, which somewhat counteracted the positive ADP employment and ISM services data from earlier in the week.