German Bond Yields Steady Amid Global Economic Factors

Germany's 10-year government bond yield remains steady amid global economic influences, close to its highest level in six weeks. European Central Bank policy is on hold, shifting focus to the U.S. Federal Reserve's hawkish stance. U.S. yields are rising, affecting euro zone bond markets as ECB expectations remain stable.

Germany's benchmark 10-year government bond yield held steady on Monday, remaining near a six-week high. This stability reflects the significant influence of external factors on euro zone bond markets, notably the escalating yields of U.S. Treasury and British gilts.

Despite the European Central Bank keeping its policy unchanged, the market attention is shifting to the U.S. Federal Reserve. U.S. policymakers have become more hawkish, scaling back on expectations of a rate cut, attributed to persistent inflationary pressures, even amid signs of a cooling labor market.

This hawkish stance has propelled U.S. yields upwards, with the 10-year yield reaching 4.13%. The return of U.S. government operations following the shutdown brings awaited data, including the postponed September employment report. ECB policy projections remain constant, with minimal shifts anticipated in the coming months, impacting Germany's bond yields.

(With inputs from agencies.)