Germany 10-Year Bond Yield Down to 4-Week Low

Germany’s 10-year government bond yield fell to 2.67%, its lowest in about a month, retreating from early-week highs that had surpassed March levels as fiscal and political concerns across Europe drove long-term yields higher. The pullback came after weak US economic data boosted expectations for Fed rate cuts this month and through the remainder of the year, easing pressure on global borrowing costs. Earlier in the week, yields spiked as the UK came into focus over fiscal sustainability concerns, while political instability in France also weighed on sentiment. In Germany, the government’s medium-term finance plan projects about €500 billion in net new borrowing through 2029 to fund infrastructure and defense spending. Attention now turns to next week’s ECB policy meeting, where rates are widely expected to remain on hold for a second straight decision amid steady growth and near-target inflation. The eurozone economy grew 0.1% in Q2, while inflation stood at 2.1% in August.