Germany’s 10-year Bund yield hovered around 2.63%, its highest level in nearly two weeks, as investors positioned for a busy week of global trade talks, central bank decisions, and key economic data releases. Market sentiment improved amid renewed optimism over US–China trade negotiations, with Presidents Trump and Xi Jinping set to meet on Thursday to finalize the framework of a preliminary deal discussed over the weekend. Meanwhile, the European Central Bank is widely expected to keep interest rates unchanged at its Thursday meeting, while the US Federal Reserve is anticipated to lower borrowing costs in response to a slowing labor market and lower-than-expected inflation. On the domestic front, Germany is set to release flash third-quarter GDP, October inflation, and consumer sentiment data later this week. Notably, the Ifo business climate index came in stronger than expected in October, suggesting some resilience in Europe’s largest economy.
