European bonds fell, Lagarde said economic growth risks are more balanced.

European bond prices fell as traders reduced their bets on further interest rate cuts by the European Central Bank, as President Lagarde stated that the central bank now sees economic growth risks as being more balanced rather than biased towards the downside. She also said that the process of lowering inflation in the eurozone has now ended. The yield on German 10-year government bonds rose by 3 basis points to 2.69%. Traders are expecting only a 4 basis point cut in interest rates for the year, lower than the 6 basis points before the ECB's rate decision on Thursday. Pricing for 2026 suggests that traders are betting that the rate cutting cycle may have already ended.