10.09.202508:39:48UTC+00Bund Yields Ease Ahead of ECB Decision and US Inflation Data

Germany's 10-year government bond yield decreased to 2.65%, nearing Monday’s four-week low of 2.638%. Investors are now shifting their focus from French political developments to the European Central Bank (ECB) meeting on Thursday, as well as the forthcoming US inflation figures. The ECB is anticipated to maintain interest rates for a second consecutive session, as officials consider trade uncertainties, the possible consequences of proposed US tariffs, and steady inflation at target levels for three consecutive months. In the United States, weak labor market data released last week has heightened expectations for a potential rate cut by the Federal Reserve in September. In France, President Emmanuel Macron's appointment of a new prime minister has alleviated some political uncertainty. On the geopolitical front, tensions remain high as reports suggest US President Donald Trump has urged the European Union to consider imposing tariffs of up to 100% on India and China as a strategy to compel Russia to cease its military actions in Ukraine. Additionally, Poland has intercepted and neutralized Russian drones that breached its airspace during a significant offensive in western Ukraine.