German and British government bond prices rose, boosted by safe-haven buying ahead of the release of the Federal Reserve's decision statement.

German and British government bonds remain bullish, outperforming US government bonds, as safe-haven buying emerged after the EU announced plans for retaliatory tariffs against the United States. The currency market maintains its bets on the European Central Bank cutting interest rates in June, with expectations of a 23 basis point cut. Bets on further easing have increased by as much as 2 basis points, with swap trades indicating a total cut of 64 basis points expected later this year. The Federal Reserve is expected to keep rates in the range of 4.25% to 4.5% on Wednesday evening. Traders and economists unanimously predict that the Bank of England will cut rates by 25 basis points to 4.25% on Thursday, with swap trades indicating a potential 38 basis point cut in June and a total of 96 basis points cut by the end of the year.