FX.co ★ German Bund Yields Stable Ahead of CPI

Germany’s 10-year Bund yield held just above 2.7%, steadying after a recent decline to its lowest level since late November, as investors looked ahead to Friday’s inflation data for clues on how a stronger euro might affect price pressures and the European Central Bank’s policy stance. Addressing a European Parliament committee on Thursday, ECB President Christine Lagarde reiterated that headline inflation is expected to gradually return to the 2% target over the medium term as wage growth moderates, while food inflation—crucial to households’ perception of price stability—is forecast to ease to just above 2% later this year. She also underlined that the ECB will keep a close watch on foreign exchange developments but has no intention of directly intervening in currency markets. In the broader global context, investors continued to weigh the impact of US President Donald Trump’s newly announced 10% global tariffs and a third round of US–Iran nuclear talks in Geneva, set against a backdrop of mounting tensions in the Middle East.