Germany's 10-year government bond yield remains steady at a nearly five-week low of 3.42%

(1) Germany's 10-year government bond yield was little changed, reporting around 3.42%, near a five-week low, and fell nearly 7 basis points this week, following the easing of global borrowing costs due to cooling monetary tightening expectations. (2) Federal Reserve Chair Waller’s remarks at the IMF summit were interpreted as hinting that the Fed will keep interest rates unchanged this month, despite inflation data being higher than expected. (3) In Europe, European Central Bank President Lagarde’s comments reinforced the case for cautious observation. (4) Lagarde stated that high inflation in the eurozone is mainly driven by soaring energy prices caused by the Iran conflict, though this is not the only factor. (5) Although there is no sign that second-round effects are being transmitted to other prices, the European Central Bank will monitor for early signs, including wage demands in union negotiations. (6) The European Central Bank has raised rates twice in the past four months, and the market expects another rate hike in December.