FX.co ★ German Bund Yield Falls to Fresh 1-Month Low

Germany's yield on the 10-year Bund has decreased to 2.5%, marking its lowest point since March 4, as escalating global trade tensions have heightened concerns of an impending economic slowdown. Recently, China declared a 34% tariff on all imported U.S. goods starting April 10, in response to the Trump administration's decision to implement a 10% tariff on all imports. The U.S. extended higher tariffs to select nations, instituting a 20% duty on EU imports and an additional 34% tariff on Chinese goods. Within Europe, French President Emmanuel Macron urged companies to halt investments in the U.S. as the European Commission began preparing countermeasures. Meanwhile, President Donald Trump minimized fears regarding inflation and recession risks. Consequently, markets are now pricing in over a 90% chance of a 25 basis point rate cut by the European Central Bank in April, and they predict the deposit rate will drop to 1.65% by December, down from the current level of 2.5%.