2025.08.1907:53:09UTC+00German 10-Year Bund Yield Little Changed

Germany's 10-year bund yield remained around 2.77%, close to its highest level since March, as traders analyzed discussions in Washington regarding the resolution of the Russia-Ukraine conflict. NATO chief Mark Rutte described the meeting between Trump, Zelenskiy, and European leaders as "very successful." Trump subsequently announced he had contacted Putin to organize a meeting with Zelenskiy, followed by a trilateral summit. While the prospect of peace improved risk sentiment, persistent uncertainty kept bond yields stable. Expectations for the European Central Bank's rate decisions remain unchanged, with markets not anticipating any adjustments in September. Investors are closely monitoring the Euro Area flash PMIs for indications of economic momentum, following a Q2 GDP growth of just 0.1% and inflation holding at 2%. Meanwhile, in the United States, traders are pricing in an 85% likelihood of a 25 basis point cut by the Federal Reserve at the September 16–17 meeting, as they await Powell's upcoming speech at Jackson Hole on Friday.