FX.co ★ Germany Bund Yield Eases as Investors Eye Data and Fed Decision

Germany's 10-year Bund yield has eased to 2.88%, following a peak slightly above 2.9% on Friday—its highest level since late December. This comes in the wake of recent volatility in Japanese markets and increased geopolitical tensions, particularly concerning Greenland. Data released on Monday indicate that German business sentiment remained stable in January, not meeting anticipations for a mild upturn. Investors are now focusing on a series of upcoming economic reports, including Germany's preliminary January inflation figures, fourth-quarter GDP data, and the Federal Reserve's policy announcement set for Wednesday, where interest rates are largely anticipated to hold steady. Adding to the atmosphere of uncertainty is the growing speculation that a more dovish candidate to potentially succeed Fed Chair Jerome Powell could be named as early as this week.