German bond yields are rising again after a brief dip caused by fears of new tariffs.
Bund yields rise as trade fears linger
The recent delay in US tariff plans for Mexico and Canada has eased those concerns, pushing yields back up. However, trade tensions remain high with China imposing tariffs on US goods and investigating Google in retaliation for US tariffs on Chinese imports.
The Eurozone is also facing economic challenges, with inflation exceeding expectations and economic weakness persisting in Germany and France.
ECB rate cuts expected amid trade uncertainty
This has led to speculation that the European Central Bank may cut interest rates further, with markets already anticipating three cuts this year. The uncertainty surrounding US trade policy could lead to even more aggressive easing by the ECB.
