2026.10.1209:00:46UTC+00Bund Yields Ease

Germany’s 10-year Bund yield fell to 3.46%, hovering near its lowest level in more than a week, as declining oil prices and receding worries about supply disruptions in the Middle East led investors to pare back expectations of further ECB tightening. Demand for safe-haven assets also lent support to German government bonds.

Even so, European bond yields remain elevated, reflecting signs of economic resilience, persistent energy-driven inflationary pressures, and mounting concerns over France’s public finances. The French minority government aims to reduce the budget deficit to 5% of GDP by 2027, but faces uncertainty over parliamentary backing for spending cuts ahead of next year’s presidential election.

German politics were also in focus after Bärbel Bas announced her resignation as Labour Minister and head of the SPD. Investors now turn their attention to Wednesday’s US CPI release and comments from ECB officials at this week’s IMF–World Bank Annual Meetings for further guidance on the monetary policy outlook.