FX.co ★ German Bund Yield Falls to Fresh Three-Month Low

Germany’s 10-year Bund yield continued its recent decline, falling to 2.7%—its lowest level since late November—as mounting trade uncertainty drove investors into safe-haven assets. The shift followed US President Donald Trump’s announcement of a new 10% global tariff, introduced via an executive order signed last Friday, just hours after the US Supreme Court blocked several of the administration’s earlier import duties.

According to Bloomberg, White House officials are now preparing a formal proposal that could raise the tariff to 15%. Trump also warned that countries seeking to “play games” with existing trade agreements could face even higher duties. His comments came after the European Parliament halted progress on a trade deal with Washington, stating it would await greater clarity from US authorities before moving forward.

Meanwhile, investors are turning their attention to upcoming German inflation data for a clearer read on how the euro’s strength might affect price pressures and, in turn, shape the European Central Bank’s policy outlook.