Germany's benchmark 10-year government bond yield held steady on Monday, remaining near a six-week high. This stability reflects the significant influence of external factors on euro zone bond markets, notably the escalating yields of U.S. Treasury and British gilts.

Despite the European Central Bank keeping its policy unchanged, the market attention is shifting to the U.S. Federal Reserve. U.S. policymakers have become more hawkish, scaling back on expectations of a rate cut, attributed to persistent inflationary pressures, even amid signs of a cooling labor market.

This hawkish stance has propelled U.S. yields upwards, with the 10-year yield reaching 4.13%. The return of U.S. government operations following the shutdown brings awaited data, including the postponed September employment

See Full Page