German bond prices continued to rise after Powell's dovish remarks, underperforming U.S. Treasuries

Federal Reserve Chairman Jerome Powell pointed out that the downside risks to employment are rising and hinted at a possible adjustment to interest rates. Subsequently, German government bonds continued to rise, with mid-curve bonds leading the way, although they underperformed compared to U.S. Treasuries. The yield on Germany's 10-year government bonds fell by 3 basis points to 2.73%; Italian bonds outperformed other Eurozone bonds, with the Italy-Germany government bond spread tightening by 2 basis points to 81 basis points.

The money market maintains expectations for the European Central Bank's easing, with a near 10 basis point rate cut anticipated before the end of the year. UK government bond prices rose, and the yield on UK 10-year government bonds fell by 1 basis point to 4.72%, as traders continued to bet that the Bank of England would further cut rates, with swap trades indicating an additional 8 basis point cut this year