FX.co ★ German Bund Yields Edge Higher

Germany's 10-year Bund yield experienced a slight increase to 2.58%, recovering from a three-month low of 2.56% reached earlier on Wednesday. This movement was driven by investor response to diminished political tensions in France, following the French government's successful avoidance of a no-confidence vote. Concurrently, global financial markets were influenced by expectations of impending interest rate cuts in the United States and renewed trade tensions between the U.S. and China. Federal Reserve Chair Jerome Powell pointed out weaknesses in the labor market, and the Fed's Beige Book reported a further deceleration in the U.S. economy, bolstering the likelihood of an additional rate cut later this month. On the international trade front, heightened tensions arose from China's decision to expand controls on rare earth exports and President Trump's threats to impose 100% tariffs on Chinese imports. Despite these developments, a meeting between President Trump and Chinese President Xi Jinping is anticipated to take place in South Korea later this month.