German Bund Yields Slip as Investors Weigh Fed Cut

German 10-year Bund yields fell toward 2.66% on Thursday, the lowest level in a week, as markets digested the latest policy signals from central banks. The US Federal Reserve delivered its first rate cut of the year amid evidence of a cooling labor market, but struck a cautious tone on the path ahead. Fed Chair Jerome Powell framed the move as a risk-management cut, pushing back on expectations for aggressive easing and stressing that the central bank does not need to move quickly on rates. In the euro area, policymakers have also emphasized caution. ECB officials continue to flag risks from tariffs, sticky services inflation, elevated food prices, and fiscal policy uncertainty. The ECB held rates steady for a second straight meeting last week, reinforcing the view that its rate-cutting cycle may be nearing an end.