German 10-year Bund yield falls 5 bps to 3.40% as bonds extend rally

A 5bp move in Bunds is modest in isolation, but the extension of the rally signals that euro-area benchmark borrowing costs are still grinding lower rather than finding a floor. That matters beyond sovereign debt: Bund yields anchor pricing across euro-area credit and set the risk-free reference that RWA and tokenized fixed-income products are benchmarked against, so a sustained decline feeds directly into on-chain yield expectations. The open question is whether this is a durable repricing of growth or inflation expectations, or simply positioning — the item gives no driver, so the direction of the next move is unresolved.