German 2-Year Bund Yield Rises 5bps; Long-End Yields Fall

The front-end selloff alongside falling long-end yields points to a curve trade rather than a uniform repricing of German duration risk. The 2/10 spread compressing to roughly 36bps signals markets are leaning toward near-term policy tightening or stickier short-rate expectations while demand holds at the long end. For RWA and crypto markets, the read-through is limited but real: a flatter Bund curve keeps euro-denominated risk-free carry relatively attractive versus longer duration, which can influence how tokenized treasury products are structured. The open question is whether the front-end move extends or reverses.