FX.co ★ German Yields Edge Up as Trump's Tariffs Blocked by US Trade Court

The yield on the German 10-year Bund saw a modest increase, nearing 2.59%, which aligns with a broader upward trend in borrowing costs. This movement occurred as a response to the US Court of International Trade's ruling that former President Donald Trump overstepped his executive powers by imposing reciprocal tariffs, subsequently ordering the cessation of their enforcement. This legal decision alleviated investor concerns regarding an escalating trade war and invigorated interest in higher-risk assets. Earlier this week, President Trump had delayed the imposition of a planned 50% tariff on imports from the EU until July 9th, subsequent to discussions with Ursula von der Leyen, President of the European Commission. Initially, the EU faced a 20% duty under an April-initiated reciprocal tariff scheme, which was provisionally lowered to 10%. Regarding monetary policy, the European Central Bank is anticipated to reduce interest rates during its June meeting, potentially followed by a pause in further rate cuts.