FX.co ★ German 10-Year Yield Rises Slightly as Markets Weigh Key Data

At the close of May, the yield on Germany's 10-year Bund inched above 2.5%, attempting a rebound from its lowest point since early May. This movement came as investors evaluated various economic reports and their potential impact on the European Central Bank's future policies. Inflation remained consistent at 2.1% in May, equaling April's six-month low, although it slightly surpassed market predictions, which were set at 2.0%. While there was a minor decrease in services and core inflation, goods inflation saw a rise, attributable to a less drastic fall in energy prices. Additionally, German retail sales experienced a 1.1% decline in April, marking the first decrease in four months and falling well short of the projected 0.2% increase. This recent data underscores expectations that the ECB will likely cut interest rates by 25 basis points during its upcoming meeting. Concurrently, market sentiment was tempered by a U.S. appeals court's temporary suspension of the block on trade tariffs imposed by former President Trump.