FX.co ★ German Bund Yields Fall

Germany’s 10-year Bund yield fell to 2.73%, its lowest level since late November, as escalating tensions between the US and Iran boosted global demand for safe-haven assets. The US is strengthening its military presence in the Middle East, while President Donald Trump considers additional measures to increase pressure on Tehran during ongoing negotiations. At the same time, investors assessed stronger-than-expected eurozone PMI figures. Private-sector activity in the euro area grew at its fastest pace since November, driven by the sharpest increase in manufacturing output since August 2025 and an acceleration in services activity. In Germany, factory production returned to growth for the first time since June 2022. Markets also reacted to comments from Christine Lagarde, who told The Wall Street Journal that she plans to serve out her full term, dismissing earlier speculation that she might step down early.