FX.co ★ German 10-Year Bund Yield Recovers Slightly

Germany's 10-year Bund yield increased by 9 basis points to reach 2.66%, partially offsetting the previous week's decline of 16.3 basis points. This movement aligns with trends in US Treasuries as market participants anticipate clarification regarding impending tariff initiatives. President Trump has issued a warning of potential new tariffs, set at 50%, on Chinese imports, which could commence on April 9 unless Beijing retracts its retaliatory tariffs by Tuesday. The White House has dismissed circulating rumors of a potential 90-day tariff suspension as inaccurate, affirming that discussions with other nations will commence promptly. Meanwhile, EU President Ursula von der Leyen expressed the bloc's readiness to engage in talks but stated that preparations for countermeasures would ensue if necessary. Concurrently, expectations for a rate cut in the Eurozone have shifted, with markets now anticipating a 90% likelihood of a 25 basis point reduction by the European Central Bank in April. Traders predict that the deposit rate may decrease to 1.65% by the end of the year, a decline from the current level of 2.5%.