German Federal Bonds on the Rise: Markets Showing Stability

On Monday, German government bond prices recorded moderate gains. The benchmark Euro-Bund-Future rose by 0.24 percent by midday, reaching 129.59 points. As a result of this development, the yield on ten-year government bonds fell to 2.62 percent. Economic data from the Eurozone regarding industrial sentiment, published in the morning, had only marginal effects on the bonds. According to a second estimate by S&P Global, the Purchasing Managers' Index improved slightly compared to the previous month. However, the increase was smaller than initially expected and continues to signal a contraction in the industrial sector. In the coming days, notable monetary policy statements from the European Central Bank and the US Federal Reserve are unlikely, as both institutions are in the customary quiet period before important interest rate meetings. The ECB is expected to announce an initial interest rate cut on Thursday, while the Federal Reserve is likely to maintain its tight monetary policy a week later.