FX.co ★ Bund Yield Hits Three-Week High

Germany’s 10-year Bund yield climbed to 2.65%, marking its highest point since October 9. This increase follows hawkish commentary from Federal Reserve Chair Jerome Powell, which dampened expectations for a rate cut from the Federal Reserve in December, as attention also turns to the forthcoming policy decision from the European Central Bank. Investors are assessing data that reflects economic stagnation in Germany, influenced by a decline in exports, alongside regional consumer price index figures that suggest reduced inflationary pressures, and the much-anticipated US-China trade deal. On Wednesday, the Federal Reserve reduced interest rates by 25 basis points for the second time this year. However, Powell cautioned that officials remain divided regarding the future policy direction, warning that a rate cut in December is "not a foregone conclusion."