Archive · 17 Sep 2025
Euro Zone Bond Yields Edge Lower Ahead of Fed Rate Cut
Bond yields in Europe went down as people waited for the U.S. Federal Reserve to possibly lower interest rates.
This is because the US market is so big it affects others.
Experts believe a small rate cut is expected.
The focus is on how much the Fed might cut rates and what they say about the economy.
The expectation of lower rates in the US could influence European bond yields.
Meanwhile, inflation data in Europe and the UK was also released, keeping the markets busy.
Euro zone government bond yields decreased before expected U.S. Fed rate cut.
German 10-year bond yield decreased to 2.67%.
U.S. 10-year Treasury yields were relatively unchanged.
Markets have fully priced in a 25 basis-point rate cut.
German 30-year bond yields hit their lowest level since August 14.
- Who
- Euro zone bond market, investors
- What
- Euro zone government bond yields eased
- When
- Wednesday, September 17
- Where
- Euro zone, Germany, Britain
- Why
- Ahead of an expected U.S. Federal Reserve rate cut
US Fed Rate Cut Expectations
Market Sentiment
Extent of Rate Cuts
US Fed Rate Cut Expectations
Traders expect the Fed to lower policy rates by nearly 70 bps by the end of 2025.
Market Sentiment
Some experts believe a 25 bps cut is already priced in, with expectations for further easing uncertain
- German 10-year Bond Yield
- 2.67%
- US 10-year Treasury Yield
- 4.03%
- US 2-year Treasury Yield
- 3.53%
- German 30-year Bond Yield
- 3.23%
- Eurozone Inflation (Aug)
- 0.3%
- UK Inflation (Aug)
- 3.8%
Sources
Euro Hits Four-Year High as Traders Prepare for Fed Rate Cut
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