After the publication of weak data from the German Economic Institute, German bond yields continue to fall.

German government bond yields continued to decline slightly, after the business climate data from the German Economic Institute was better than expected but still weak. The climate is rebounding from a low point, but this increase is not enough to alleviate concerns about the economic damage caused by high oil prices and tensions in the Middle East. The German Economic Institute's business climate index for May climbed to 84.9, better than the average expectation of 84.1, but not much higher than April's 84.5 - the lowest level since May 2020. Given that these data were released after weak purchasing manager surveys on Thursday, the European Central Bank may remain cautious about raising interest rates. Tradeweb data shows that after the data was released, the yield on 10-year German government bonds fell by 4.5 basis points to a one-week low of 3.053%.