Germany’s 10-year Bund yield rose to 2.9%, returning to levels not seen since March 2025, as investors digested stronger-than-expected PMI data and signs of easing US-Europe trade tensions. S&P Global data showed Germany’s private sector activity expanded at the fastest pace in three months in January, exceeding expectations. Growth was driven by faster expansion in services and a return to growth in manufacturing output, supported by a renewed rise in new order inflows. Business sentiment also strengthened sharply, reaching its highest level since February 2022. Despite the positive data, geopolitical uncertainty continued to dominate the headlines. US President Donald Trump said he would refrain from imposing tariffs on goods from European countries opposing his Greenland plan, adding that a “framework for a future deal” had been agreed following talks with NATO Secretary-General Mark Rutte, though no details were disclosed.
