FX.co ★ Bund Yields Hover Near September Lows

On Monday, Germany's 10-year Bund yield edged up slightly to 2.64%, remaining close to its lowest point since September 8. This movement comes as investors remain attentive to political events in France and ongoing trade tensions between the US and China. In France, Sébastien Lecornu—who has been appointed as the country's fifth prime minister in just two years—initially resigned last Monday but was reappointed by Friday. He is now navigating a challenging political landscape as the deadline for the draft budget bill approaches on Monday. To ensure the bill's passage through a divided parliament, Lecornu is endeavoring to gain the abstention or conditional support of both the Socialists and the center-right Republicans in the crucial budget vote. In other developments, US President Trump adopted a more conciliatory tone towards China on Sunday, just two days after threatening to impose a 100% tariff on Chinese imports. This threat came in response to China's recent tightening of export controls on rare earth materials.