Eurozone government bond yields have had a lackluster response to the ECB's 25 basis point interest rate cut. The current rate cut is in line with market expectations and has been fully absorbed before. According to Tradeweb, the yield on German 10-year treasury bonds rose to 2.199% after the decision to cut interest rates was announced, compared to 2.196% before the decision was announced. The two-year German federal Schatz bond yield was 2.179%, slightly higher than 2.176% before the interest rate cut decision was announced. Michael Brown, senior research strategist at Pepperstone, said in a report: “Policymakers hope that today's interest rate cuts — just five weeks since the last rate cut — will protect the Eurozone economy and ensure that the economic contraction shown in the latest PMI survey is relatively small.”

Eurozone government bond yields have had a lackluster response to the ECB's 25 basis point interest rate cut. The current rate cut is in line with market expectations and has been fully absorbed before. According to Tradeweb, the yield on German 10-year treasury bonds rose to 2.199% after the decision to cut interest rates was announced, compared to 2.196% before the decision was announced. The two-year German federal Schatz bond yield was 2.179%, slightly higher than 2.176% before the interest rate cut decision was announced. Michael Brown, senior research strategist at Pepperstone, said in a report: “Policymakers hope that today's interest rate cuts — just five weeks since the last rate cut — will protect the Eurozone economy and ensure that the economic contraction shown in the latest PMI survey is relatively small.”