How European Bonds Are Splitting From US Yields in 2026

Episode 89 of The Global Economy Podcast breaks down the growing divergence between US Treasury yields and European government bond yields in mid-2026. Lucas and Luna examine the surprising strength of German Bunds, the role of ECB policy expectations, and what this split means for currency markets and global capital flows. With the US still battling sticky inflation and Europe facing a sharper growth slowdown, the gap between a 4.5% ten-year Treasury and a 2.8% ten-year Bund is the widest in over two decades. The hosts connect this to the euro's recent stability around $1.14, the weakening yen, and how big institutional investors are repositioning their fixed-income portfolios. A focused, numbers-driven discussion for anyone watching global macro trends. #USvsEuropeanBonds #TreasuryYields #GermanBunds #ECB #FederalReserve #YieldDivergence #FixedIncome #GlobalMacro #EuroDollar #TenYearYield #BondMarket #CapitalFlows #Inflation #GrowthSlowdown #PortfolioAllocation #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo