Germany's Bond Yields Stir as Federal Reserve Minutes Awaited

Germany's 10-year government bond yield slightly increased on Tuesday as investors awaited the Federal Reserve's December meeting minutes. The yield had previously dropped due to holiday-thinned trading. Markets anticipate potential disagreements within the Federal Open Market Committee, amid contrasting policies with the European Central Bank.

Germany's 10-year government bond yield edged up on Tuesday, ahead of the Federal Reserve's December meeting minutes, having previously dipped to a three-week low in thin holiday trading.

The benchmark Bund yield rose by just over 1 basis point to 2.84%, after reaching a nine-month high of 2.917% last week. Most of the region's 10-year bond yields also experienced slight increases after Monday's decline.

The focus on Tuesday centered on the Fed's policy meeting minutes, with markets predicting ongoing disagreements among Fed members and minor rate adjustments. In contrast, the European Central Bank, led by Isabel Schnabel, suggests a stable interest rate outlook in the near future.

(With inputs from agencies.)