The US and European 10-year yields are down sharply today. A snapshot shows: Germany 2.615%, -6.3 basis pointsFrance 3.295%, -9.0 basis pointsUK 4.613%, -6.0 basis pointsSwitzerland 0.423%, -5.0 basis pointsSpain 3.217%, -16.9 basis pointsItaly 3.484%, -8.0 basis pointsThe fall in European yields come ahead of Thursday’s ECB decision and eurozone flash PMIs, reflecting cautious investor sentiment. The ECB is expected to hold rates steady after eight cuts, amid ongoing EU-US tariff talks, a firm euro, and low inflation. PMIs from Germany, France, and the eurozone are projected to rise slightly, while EU envoys prepare for potential no-deal fallout with President Trump ahead of the August 1 tariff deadline.Although the EURUSD has been moving lower since July 1, the pair has been rebounding since Thursday's low and has moved above its 200-hour moving average today at 1.1658, a key swing area off of the daily chart between 1.1663 and 1.1691, and the 50% midpoint of the July trading range at 1.16928.The current price is trading at 1.17159.. The high price from last week, off of the spike on the potential firing of Fed chair Powell, reached up to 1.1721. The 61.8% retracement comes in at 1.17252. Those are the next targets on the trend-like move today.The EURUSD is up 13.11% in 2025. That is near its biggest increase since 2017 when the EURUSD advanced 14.14%.The US 10-year yield is also down sharply today with the yield now down -7.3 basis points at 4.357%. For the year, the US 10 year is down -21.5 basis points.In contrast, most of the European 10 year yields are higher modestly despite the declines today. Ironically, yields are rising even after a series of ECB rate cuts—highlighting a challenge for President Trump’s push for Fed easing. While the ECB is actively loosening policy, longer-term rates remain elevated, underscoring the Fed’s limited influence over the long end of the curve, which could complicate Trump’s hopes for broader financial conditions to ease more (and for lower borrowing costs for the Treasury and US consumers too).For the year, European 10 year yields shows: Germany +25 basis pointsFrance +10 basis pointsUK +3.2 basis pointsSwitzerland +13.2 basis pointsSpain +15.0 basis pointsItaly is down -6.6 basis points This article was written by Greg Michalowski at investinglive.com.