German 10-year bond yields rise in response to ECB minutes

Germany's 10-year bond yield rose slightly to 2.575% after the ECB Board minutes were announced.

Policymakers expressed concerns about inflation despite interest rate cuts and expressed uncertainty about reaching the 2% target by 2025.

Also, since future interest rate cuts were suggested without specifying when to cut interest rates, observations spread that 1 or 2 interest rate cuts would be implemented during this year.

In the US, weak economic indicators raised expectations for the Fed to cut interest rates in September.

On the political side, an extreme majority emerged in the second round of the French parliamentary election, and the possibility that the parliament would idle increased, so investor sentiment improved.

The difference in borrowing costs between France and Germany has been reduced by 70 basis points.