German Bund Yields Steady at 2-Week Highs
Germany’s 10-year Bund yield stabilized around 2.64%, near its highest level since October 9, as investors prepared for a relatively quiet week following last week’s ECB policy meeting. The central bank left interest rates unchanged while maintaining a relatively upbeat growth outlook for the eurozone and an unchanged inflation projection. On the data front, German inflation eased slightly less than expected, coming in at 2.3% in October, while the economy stagnated, weighed down by a drop in exports. In contrast, eurozone GDP grew 0.2%, slightly above expectations, supported by robust growth in France and Spain. Across the Atlantic, the Federal Reserve cut interest rates, but Chair Jerome Powell signaled that further easing in December is “not a foregone conclusion.” Investors now turn to this week’s ADP employment report for clues on the US labor market and the broader economic outlook.
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