Germany's Bund Yield Drops Amid Global Market Tensions
Germany's 10-year Bund yield fell to a near six-week low due to safe-haven flows, influenced by U.S. trade tensions and Middle East issues. U.S. inflation data showing below-expected increases also supported bond rallies. Euro zone investors focused on ECB policymakers' statements regarding future interest rate cuts.
Germany's 10-year Bund yield declined to a near six-week low on Thursday as investors sought safe-haven assets amid global market jitters. The drop followed subdued U.S. inflation data and heightened tensions surrounding trade and the Middle East.
Wednesday saw global yields fall as U.S. consumer prices rose less than anticipated in May, bolstered by weaker petrol costs. U.S. Treasuries' successful auction further eased market sentiment. President Trump's statements about imminent trade deal outlines and personnel movements out of the Middle East added to the risk-off environment.
While U.S. Treasury yields remained in decline, euro zone bonds showed little movement. ECB members discussed rate strategies, with ECB's Isabel Schnabel affirming current rates while Lithuanian policymaker Gediminas Simkus suggested potential cuts. Meanwhile, Italy's and Germany's bond yields adjusted slightly.
(With inputs from agencies.)
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