FX.co ★ Germany Bund Yield Rises Amid Global Risk-Off

Germany's 10-year Bund yield has surpassed 2.7%, nearing its peak level since early October. This shift comes as global markets shy away from risk in anticipation of significant economic data from both the Eurozone and the US, which could influence future monetary policies. Despite varied inflation reports across Europe’s leading economies and European Central Bank (ECB) meeting minutes suggesting no immediate plans to ease policies, market expectations remain steady, with no rate changes foreseen until 2026. Moving to Germany, lawmakers have ratified the 2026 budget, concluding prolonged political debates and deviating from the traditional "black zero" fiscal principle, as the new strategy leans more heavily on borrowing to finance major initiatives. Concurrently, in the US, it is widely anticipated that the Federal Reserve will proceed with a third interest rate cut in December.