FX.co ★ Germany 10-Year Bund Yield Rises to 2.9%

Germany's 10-year Bund yield increased to 2.9%, reaching heights not seen since March 2025, as the market responded to stronger-than-anticipated PMI data alongside signs of easing trade tensions between the US and Europe. According to S&P Global, Germany's private sector activity experienced the fastest growth in three months this January, surpassing forecasts. This expansion was driven by a more rapid increase in services and a resurgence in manufacturing output, fueled by a renewed rise in new order inflows. Additionally, business confidence surged significantly, climbing to its highest point since February 2022. Concurrently, geopolitical uncertainty remained a focal point. US President Donald Trump indicated he would hold off on imposing tariffs on goods from European nations opposing his Greenland proposal and mentioned that a "framework for a future deal" had been established following discussions with NATO Secretary-General Mark Rutte, though specific details were not provided.