Germany’s 10-year Bund yield climbed above 2.7%, approaching its highest level since early October, as a global flight from risk unfolded ahead of key Eurozone and US economic data that could shape the monetary policy outlook. Last week’s mixed inflation data across Europe’s largest economies, combined with ECB meeting minutes signaling no urgency to begin easing, kept market expectations largely unchanged, with investors anticipating no rate adjustments through 2026. In Germany, lawmakers approved the 2026 budget, ending months of political wrangling and breaking from the long-standing “black zero” fiscal rule, as the plan relies more on borrowing to fund major programs. Meanwhile, in the US, the Federal Reserve is widely expected to implement a third rate cut in December.
