FX.co ★ German Bund Yield Rebounds

Germany's 10-year Bund yield rose towards 2.7%, recovering from a one-month low of 2.487% reached last Friday. This movement comes amid investor optimism that some tariffs introduced by U.S. President Trump last week might be renegotiated. The markets are also seeking more insight into the European Union's reaction to the increasing trade tensions with the United States. U.S. Treasury Secretary Scott Bessent mentioned that approximately 70 countries, including Japan, have approached the White House to initiate tariff negotiations. Furthermore, the European Commission disclosed its proposition of a "zero-for-zero" tariff agreement to the Trump administration as a measure to prevent a full-scale trade war—an offer that was ultimately declined. On the monetary policy horizon, traders now estimate a 90% chance of a 25-basis-point rate cut in April, with two additional cuts expected before year's end—potentially one as soon as June—and there is intensifying speculation around a possible third reduction.