15.12.202511:01:47UTC+00German 10-Year Bund Yield Hovers at 9-Month Highs

During the final full trading week of the year, Germany's 10-year Bund yield remained steady at around 2.84%, close to its nine-month peak, as investors anticipated the European Central Bank's upcoming monetary policy decision. It is largely anticipated that the ECB will maintain interest rates unchanged for the fourth consecutive meeting, with markets estimating a roughly 30% chance of a 25 basis point rate increase by the end of 2026. In November, eurozone inflation decreased to 2.2%, and the GDP grew by 0.3% on a quarterly basis in the third quarter. Most policymakers believe that the current policy rates are appropriate for the time being. Recently, ECB President Lagarde indicated that the central bank might revise its growth forecasts upward. Meanwhile, markets are closely monitoring the situation surrounding attempts to conclude the conflict in Ukraine and ongoing European discussions regarding how Russian assets frozen in Europe might be utilized to support Ukraine's defense efforts.