Deutschland 10-Jahres-Rendite unter 2,7%

Germany’s 10-year Bund yield dipped below 2.7% as traders continued to assess the monetary and economic outlook.

Market participants have scaled back expectations for a 25-basis-point rate cut by the ECB this year, with swap markets now pricing in less than a 50% chance of such a move.

The shift in sentiment follows a second consecutive monthly rise in inflation in Spain, along with slight price increases in some German states, while inflation remained steady in France and Italy.

Meanwhile, Eurozone GDP grew by just 0.1% in the second quarter, a sharp slowdown from 0.6% in Q1—but still surpassing forecasts of flat growth.

The data revealed regional disparities: Germany and Italy both saw GDP contract by 0.1%, while France and Spain posted modest expansions.

On the trade front, investor concerns persist over the recently announced US–EU trade agreement, which many see as favoring the US disproportionately.