Yields are falling: German bonds are benefiting from the decline in inflation!

On Thursday, German government bond prices rose, reflected in a 0.35 percent rise in the Euro Bund futures to 134.47. At the same time, the yield on ten-year German government bonds fell to 2.22 percent. These developments were influenced by the release of price data from various German states, which showed a noticeable decline in inflation in August. The all-German inflation data, expected in the afternoon, should show similar trends. Earlier, Spain had reported a rejection of inflation at 2.4 percent in August, which supported the general market trend.

The markets are firmly expecting an interest rate cut by the European Central Bank (ECB) in September, which fueled speculation that interest rates would fall further and put pressure on the yields of German government bonds. On Friday, the prices of German government bonds moved only slightly, with the Euro Bund future increasing by 0.06 percent to 134.01 points, while the yield on ten-year bonds was at 2.27 percent. Investors are waiting for important inflation data from the eurozone and the USA, which could potentially trigger stronger price movements.