The market lowered bets on the European Central Bank to cut interest rates, and German bonds fell the most in a month

The German services PMI was revised upward, and the U.S. employment data improved, and the German government bond fell, driven by real yields. Germany’s 10-year government bond yield is set to post its biggest gain since Dec. 8 as money markets sharply taper bets on Central Bank rate cuts, after falling after weak CPI data from several German states; real yields climbed 8 basis points to 0.10%. Traders are betting that the Central Bank will cut interest rates by 152 basis points by the end of the year, compared with expectations of 168 basis points and 165 basis points on Wednesday.

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