FX.co ★ German Bund Yield Rises Back Above 2.8%

Germany's 10-year Bund yield surged past 2.8%, marking a one-week peak as investors digested the latest insights on business confidence, PMI data, and European Central Bank (ECB) commentary. The March Ifo survey reflected the anticipated rise in German business sentiment following a landmark debt agreement aimed at revitalizing sluggish growth. Concurrently, Europe's largest economy experienced its swiftest expansion in business activity in ten months, spurred by the first uptick in manufacturing output in two years, according to the latest PMI figures. On the monetary scene, comments from ECB officials de Galhau, Cipollone, and Stournaras indicated a potential interest rate reduction as early as April. Meanwhile, President Lagarde noted the prospect of softer economic growth but minimized inflation concerns, in light of potential EU reprisals against U.S. tariffs.