Trump 2.0: The First 100 Days | EMEA

European Bonds Gaining from Flight to Safety? 10YR Bond Yields (%)

Impact on CRE

• Financial markets initially reacted positively to Europe’s fiscal shift, with 10YR bond yields diverging from the U.S.—signalling growing investor confidence and expectations of stronger near-term performance in Europe. • The recent rotation out of the USD may offer some support to the EUR and other European currencies, as investors gradually adjust their portfolios in response to evolving interest rate differentials and shifts in global risk sentiment. • European sovereign bonds and corporate bonds are a good proxy for CRE lending rates. If U.S. volatility drives investors into

Bond Yields through Feb 2025

Bond Yields through Apr 2025

5

5

4.5

4.5

4

4

3.5

3.5

3

3

European bonds, we could see CRE lending rates drift lower, providing a window for investors to grab relatively attractive debt.

2.5

2.5

2

2

1.5

1.5

01/01/2025

06/01/2025

11/01/2025

16/01/2025

21/01/2025

26/01/2025

31/01/2025

05/02/2025

10/02/2025

15/02/2025

20/02/2025

25/02/2025

02/03/2025

07/03/2025

12/03/2025

17/03/2025

22/03/2025

27/03/2025

01/04/2025

06/04/2025

01/01/2024

21/01/2024

10/02/2024

01/03/2024

21/03/2024

10/04/2024

30/04/2024

20/05/2024

09/06/2024

29/06/2024

19/07/2024

08/08/2024

28/08/2024

17/09/2024

07/10/2024

27/10/2024

16/11/2024

06/12/2024

26/12/2024

15/01/2025

04/02/2025

24/02/2025

US UK Germany

US UK Germany

Source: Deutsche Bundesbank, IMF, Bank of England, U.S. Board of Governors of the Federal Reserve System (FRB), Moody's Analytics

CONTENTS

Cushman & Wakefield