German 2-yr yield falls ~1bp on nonfarm payroll day, weekly gain narrows to ~4bp

The intraday spike and reversal in the 2-year yield on the payroll release underscores how sensitive short-dated European rates remain to US data, even as the weekly move stays modest. The curve steepening to a 38.8bp spread signals shifting expectations about the relative pace of policy normalization between the Fed and ECB. The open question is whether this pattern—brief volatility on US prints, then fading—persists as markets reassess the inflation-growth balance on both sides of the Atlantic.