Bund Yields Rise on Strong PMI
Germany’s 10-year Bund yield climbed to 2.60% as investors digested better-than-expected PMI data and awaited delayed US inflation figures for September. The October PMI showed Germany’s private sector output growing at its fastest pace since May 2023, led by robust services activity, while Eurozone business activity expanded at the strongest rate since May 2024, surpassing forecasts. In the US, inflation is expected to accelerate for a second consecutive month, ahead of the Federal Reserve’s meeting next week, with markets almost fully pricing in a 25bps rate cut. Investors also welcomed news that US President Donald Trump will meet Chinese President Xi Jinping next week, amid trade tensions and a looming deadline for additional 100% US tariffs on Chinese goods.
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