The euro rebounded on Monday as hopes for a Ukraine peace deal improved, and interest rate differentials moved against the dollar ahead of a possibly pivotal steer on U.S. economic growth in the February payrolls report late in the week.

Eurozone bond yields mostly declined as traders considered increased European borrowing for defense spending and new US tariffs. Germany's 10-year bond yield dropped, while the European Central Bank is expected to cut rates.

Nur wenige Stunden nachdem US-Präsident Donald Trump die US-Militärhilfe für die Ukraine gestoppt hat, hat die EU einen Plan zur Stärkung der europäischen Verteidigungsausgaben vorgeschlagen. Dieser sieht unter anderem einen Fonds in Höhe von 150 Milliarden Euro vor.

Euro zone bond yields fell on Tuesday as traders focussed on new U.S. tariffs on Mexico and Canada, a doubling of duties on Chinese goods, and news that President Donald Trump had paused military aid to Ukraine.

Bulgaria is set to request the European Union’s assessment on its readiness to join the euro area early next year, highlighting the government’s determination to move toward the single currency.