Germany’s 10-year Bund yield slipped below 2.8%, reaching its lowest level since January 14, as investors awaited the delayed US jobs report for fresh clues on the Federal Reserve’s policy trajectory. The employment data is expected to show a modest rebound in job growth in January, supported by fewer layoffs in certain seasonal sectors. Still, uncertainty lingers after several US officials, including White House economic adviser Kevin Hassett, warned that hiring could lose momentum in the months ahead.
In Europe, markets also absorbed signals that the European Central Bank remains largely unconcerned about the euro’s recent appreciation, as well as reports that Bank of France Governor François Villeroy de Galhau—widely regarded as a policy dove—will step down earlier than previously anticipated. ECB President Christine Lagarde adopted a balanced stance last week, stating that the euro area’s inflation outlook remains in a “good place” while downplaying worries about the strength of the single currency.
