Germany's 10-year Bund yield hovered around 2.5%, retreating from the seven-month highs reached last week, in line with a global decline in bond yields. This movement followed President Trump’s decision not to impose tariffs on Inauguration Day, as many had anticipated, although he later signaled plans for a 25% levy on Canada and Mexico starting February 1st. In Europe, ECB policymakers have urged caution regarding further rate cuts. Robert Holzmann stated that a January rate cut by the ECB is "not a foregone conclusion for me at all," while Joachim Nagel stressed that the ECB should avoid rushing into further easing given persistently high inflation and significant economic uncertainties. The ECB has already reduced interest rates four times since June and is expected to continue its easing cycle next week. Market forecasts suggest additional rate cuts could extend into the next six months, potentially leaving rates above 2% by the end of 2025.