FX.co ★ Germany 10-Year Bund Yield Holds Ahead of Heavy Supply and Key Data

The yield on Germany’s 10-year Bund remained stable above 2.8% as markets anticipated significant debt issuance, awaited crucial economic data, and dealt with renewed concerns regarding the Federal Reserve’s autonomy. Scheduled auctions from Germany, the Netherlands, Austria, Italy, and Spain, in addition to potential syndicated issuances, are expected this week. Investors are also focused on the preliminary 2025 German GDP data and the US Consumer Price Index figures for further clarity on monetary policy directions. Meanwhile, in the US, Federal Reserve Chair Jerome Powell announced that the Department of Justice had issued grand jury subpoenas to the Fed, signaling a potential criminal indictment and marking an intensification of the Trump administration’s criticisms of the Federal Reserve.