Bonds: Calm before the storm?

Things are still moving slowly, with yields moving sideways. But next Wednesday could change that, as rumors suggest. A new trend: British government bonds, because they offer higher yields. Mercedes-Benz, EnBW, and Werder Bremen are also in demand.

July 4, 2025. FRANKFURT (Frankfurt Stock Exchange). The US holiday – Independence Day – is causing little volatility in bond trading here today, too. However, the other days of the week were also quiet, as Gregor Daniel of Walter Ludwig Wertpapierhandelsbank reports. "There's a lack of momentum," the trader notes. That could change next week, however. On Wednesday, July 9, US President Donald Trump's 90-day deadline for negotiations to prevent "reciprocal" tariffs ends. "There could well be a surprise," says Daniel.

The sideways movement in yields continues. Ten-year German government bonds briefly yielded over 2.6 percent this week, prompted by the tax cuts passed in the US, as Arthur Brunner of ICF Bank reports. However, as of Friday afternoon, the yield was back at 2.54 percent, roughly the same level as the previous week.