German 10-year bond yield falls to 2-week low

In response to the decline in US bond yields in response to US Federal Reserve (Fed) Chairman Powell's dovish remarks, Germany's 10-year bond yield fell to 2.44%, which is a low level for the first time in 2 weeks or more.

Chairman Powell expressed the idea that central banks would not wait for the inflation rate to reach 2% before considering interest rate cuts, raising expectations for interest rate cuts in September.

In Europe, the ECB is likely to leave current monetary policy unchanged at Thursday's board meeting since macroeconomic changes are limited.

Most ECB members are in line with market expectations that interest rates will be cut once or twice this year.

Traders are considering the possibility that they will cut interest rates at least once more, and in some cases, cut interest rates once more by the end of the year.