Bund Yields Climb Amid Diminished U.S.-China Trade Tensions

Euro zone benchmark Bund yields rose as investor anxiety over U.S.-China trade tensions and U.S. regional banks' health diminished. Bund yields marked a fourth consecutive weekly decline, with Germany’s 10-year yield slightly increasing. Markets are keenly watching ECB rate cut predictions amid shifting economic concerns.

Euro zone benchmark Bund yields increased on Monday, indicating a shift in investor sentiment as worries over U.S.-China trade tensions and the health of U.S. regional banks receded. This adjustment slowed the recent trend of moving towards safe-haven investments.

Germany's 10-year Bund yields rose marginally by 0.5 basis points to 2.58%, following a significant week where they achieved a notable four-week decline. With money markets anticipating potential European Central Bank rate cuts due to economic growth pressures, all eyes remain on Wall Street futures.

The yield spread between Bunds and French government bonds widened amid concerns about France's fiscal health but retracted slightly after France's Prime Minister overcame no-confidence votes. Financial markets are pricing in a substantial probability for a 25-basis-point ECB rate cut by July.

(With inputs from agencies.)