German 10-Year Bund Yield Little Changed

Germany’s 10-year bund yield held near 2.77%, around its highest since March, as traders digested Washington talks on ending Russia’s war in Ukraine. NATO chief Mark Rutte called Trump’s meeting with Zelenskiy and European leaders “very successful,” while Trump later said he had spoken with Putin to arrange a meeting with Zelenskiy, followed by a trilateral summit. Hopes for peace lifted risk sentiment, though uncertainty kept bond yields steady. ECB rate expectations remain anchored, with markets seeing no change in September. Investors await Euro Area flash PMIs for signs of momentum after Q2 GDP eked out just 0.1% growth and inflation stayed at 2%. In the US, traders price an 85% chance of a 25 bps Fed cut at the September 16–17 meeting, ahead of Powell’s Jackson Hole speech on Friday.