FX.co ★ Bund Yields Steady as Markets Weigh Diverging US and Eurozone Signals

Germany’s 10-year Bund yield remained stable around 2.7%, following a decline of 3.9 basis points last week—marking its most significant weekly decrease since late May. Investors are currently evaluating the effects of weaker-than-anticipated US employment figures alongside stronger Eurozone inflation on upcoming monetary policy decisions. In July, the US economy generated fewer jobs than expected, with previous months undergoing substantial downward revisions, leading to President Trump removing a senior official from the Labor Department. Conversely, inflation in the Eurozone exceeded expectations slightly, maintaining a 2.0% rate for July, compared to a projected 1.9%. The markets are now anticipating two additional cuts in Federal Reserve interest rates this year, starting in September, whereas the European Central Bank is projected to maintain its current rate for the immediate future.