21.01.202616:04:00UTC+00German 10-Year Bund Yield Edges Higher

Germany's 10-year Bund yield continued its ascent towards 2.9%, nearing its highest point since March 2025, as European investors absorbed the impact of US President Donald Trump's remarks at Davos. During his address, Trump reiterated his interest in purchasing Greenland, clarifying that he does not intend to use force, but is instead calling for immediate negotiations regarding a possible acquisition. Despite this, geopolitical tensions remain high. The European Parliament’s trade committee has indefinitely postponed the ratification vote on a trade agreement with the United States, underscoring Europe's apprehension about Trump's intentions. Furthermore, the US has threatened to impose tariffs on several European nations unless it gains permission to buy Greenland. On the monetary policy front, indicators of a strong Eurozone economy and inflation near the target suggest that the European Central Bank is likely to keep interest rates steady for the near future.