FX.co ★ Germany 10-Year Bund Yield Climbs to 2.9%

The German 10-year Bund yield has climbed to 2.9%, marking a return to levels last observed in March 2025. This increase comes as investors assess stronger-than-anticipated PMI figures and indications of reduced trade tensions between the US and Europe. Recent data from S&P Global highlights that Germany's private sector activity grew at its quickest pace in three months as of January, surpassing forecasts. This growth was fueled by an accelerated expansion in the services sector and a resurgence in manufacturing output, attributed to a renewed increase in new order inflows. Business confidence also saw a notable boost, reaching its peak since February 2022. Despite this upbeat data, geopolitical uncertainties remain prevalent. US President Donald Trump announced a decision to avoid imposing tariffs on goods from European nations that opposed his Greenland proposal. He mentioned that a "framework for a future deal" had been established following discussions with NATO Secretary-General Mark Rutte, although specific details have yet to be revealed.