Germany’s 10-year Bund yield fell toward 2.72%, its lowest level since late November, as renewed uncertainty over global trade policy drove demand for safe-haven assets. The European Parliament announced it had suspended ratification of the US–EU trade agreement reached last July in Scotland with US President Donald Trump, following Trump’s plan to raise a temporary import tariff from 10% to 15%. That proposal came after the US Supreme Court blocked his broader tariff package.
Uncertainty also persists over whether the new 15% rate will be implemented imminently in the UK or the EU, despite assurances from US Trade Representative Jamieson Greer that existing agreements with roughly 20 countries will remain unchanged. Stronger-than-expected German business confidence offered some support to market sentiment. Investors are now focused on upcoming inflation data from Germany, France, and Spain, seeking signals on how the stronger euro might shape price pressures and influence the European Central Bank’s policy outlook.
