Bund Yields Dip Amid U.S. Trade Policy Uncertainty

Euro area Bund yields close to multi-month lows as investors await economic data and ponder U.S. trade policy impacts. Uncertainty persists despite assurances of no withdrawal from trade deals. Germany's 10-year yield drops to near December lows, while U.S. Treasury yields also decline.

Euro area benchmark Bund yields remained close to multi-month lows on Monday. Investors are bracing for upcoming economic reports and assessing the repercussions of the U.S. Supreme Court's decision against tariffs imposed by President Donald Trump.

Though analysts noted that many tariffs stem from bilateral agreements, which aren't directly affected by the Supreme Court's ruling, U.S. trade policy continues to generate uncertainty. U.S. Trade Representative Jamieson Greer assured that no countries had withdrawn from trade agreements with the U.S. Meanwhile, President Trump announced an increase in temporary tariffs on U.S. imports.

Germany's 10-year bond yield fell slightly, while investors look forward to U.S. producer prices data and German inflation figures later this week. The impacts on U.S. budget revenues remain to be seen as investors navigate fluctuating yields in both the U.S. and Europe.

(With inputs from agencies.)