Germany’s 10-year Bund yield fell to 2.58%, its lowest level since July 22, amid rising expectations of US interest rate cuts and renewed US–China trade tensions. Federal Reserve Chair Jerome Powell highlighted ongoing deterioration in the US labor market on Tuesday, reinforcing expectations of another rate cut this month. Meanwhile, US–China trade tensions intensified after President Trump signaled Washington might end certain trade ties with China. On Tuesday, both countries imposed additional port fees on each other’s shipping firms, following Trump’s threat of 100% tariffs on Chinese imports and Beijing’s tighter controls on rare earth exports.
