Germany’s 10-year Bund yield fell below the 2.8% mark, hitting its lowest level since January 14, as investors awaited the delayed US jobs report for fresh signals on the Federal Reserve’s policy path. The employment data is expected to show a modest rebound in job growth in January, aided by fewer layoffs in some seasonal sectors. However, uncertainty persists after several US officials, including White House economic adviser Kevin Hassett, cautioned that hiring could weaken in the months ahead. In Europe, markets also digested indications that the European Central Bank is largely unconcerned about the euro’s recent appreciation, alongside reports that Bank of France Governor François Villeroy de Galhau, viewed as a policy dove, will step down earlier than previously expected. ECB President Christine Lagarde struck a balanced tone last week, saying the euro area’s inflation outlook remains in a “good place” while playing down concerns over the single currency’s strength.
