German 10-Year Bond Yields Rise on Improved Risk Sentiment After US Tariff Delay

German 10-Year Bond Yields Rebound as US Tariff Delay Boosts Risk Appetite

German 10-year government bond yields climbed nearly 3 basis points to 2.597% in early trading on Monday, recovering from last Friday’s drop below 2.6%. The rebound reflects a renewed investor appetite for risk following US President Donald Trump’s decision to delay the implementation of 50% tariffs on European imports from June 1 to July 9.

The tariff threat announcement last Friday had caused investors to seek safe-haven assets, pushing Bund yields down sharply. However, the weekend phone call between Trump and European Commission President Ursula von der Leyen eased tensions, providing relief to markets.

Market participants remain cautious but optimistic as the delay in tariffs reduces immediate downside risks for global trade and economic growth, factors that had previously weighed on bond yields.