Bund yield hits three-month high as inflation rises

The yield on Germany's 10-year Bund increased to 2.42%, reaching a three-month high, as recent economic data raised questions about the European Central Bank’s anticipated rate cuts.

Bund yield hits three-month high as inflation rises

October’s Eurozone inflation climbed to 2%, exceeding forecasts of 1.9%, mainly due to unexpectedly persistent services inflation. This trend coincides with surveys indicating a rise in inflation expectations among Eurozone households, reaching their highest levels since February. This may pose challenges for the ECB’s efforts to control inflation.

Eurozone GDP grows 0.4% in Q3, outpacing expectations

Furthermore, Eurozone GDP grew by 0.4% in Q3, surpassing the expected 0.2% increase, with stronger-than-anticipated performances from Germany and France leading to reduced demand for government bonds. Investors are also watching the upcoming U.S. presidential election on Tuesday.