Eurozone's Bund Yields Face Steepest Weekly Decline Since March

Euro area benchmark Bund yields are experiencing their most significant weekly decline since March, following weak economic data. Germany’s 10-year yields dropped, reflecting economic sentiment deterioration and expectations of monetary easing. Investors await U.S. economic data and a potential Supreme Court decision on Trump's tariffs.

The euro area's benchmark Bund yields are on track for their sharpest weekly decline since March, driven by weak economic data. The yields pulled back from nearly nine-month highs, prompting investors to stay cautious ahead of upcoming U.S. economic data and a potential Supreme Court decision on Trump's tariffs.

Germany's 10-year yields, a key indicator, were down 0.5 basis points to 2.82%, marking a weekly drop of 7.5 basis points. Earlier, they hovered around 2.90%, nearing March highs before Germany announced increased spending on infrastructure and defense.

Analysts believe the euro area's economic conditions signal potential monetary easing by the European Central Bank this year, with declining inflation and economic sentiment suggesting further cuts are on the horizon.

(With inputs from agencies.)