Policy-sensitive German two-year yields were set for a fourth consecutive daily rise on Monday, ahead of a week packed with event risk, including a Ukraine summit between the United States and Russia and a deadline on a U.S.-China trade truce.

U.S. President Donald Trump and Russian President Vladimir Putin will meet on Friday in Alaska to try to broker peace in Ukraine, the first in-person meeting between a U.S. and Russian leader since former President Joe Biden met Putin in 2021.

Meanwhile, a 90-day truce in the trade war between the U.S. and China expires on Tuesday. Traders widely expect the pause to be rolled over for another 90 days.

German two-year yields (DE2YT=RR), which tend to be most reactive to changes in expectations for policy rates, were up 1.5 basis points (bps) at 1.97%, after hitting 1.974% earlier in the session, the highest level since April 3.

They ended last week with a 5 bps rise, as investors unwound bets on European Central Bank rate cuts.

Analysts argue that euro rates are increasingly likely to take their directional cues from the U.S., where data will be pivotal for Federal Reserve pricing.

Benchmark 10-year U.S. Treasury yields edged lower while interest rate-sensitive two-year yields were the highest in a week on Monday.

“Against the backdrop of continued trade rumblings and geopolitical tensions, attention will be diverted by the release of the U.S. CPI inflation data on August 12,” said Jane Foley, strategist at RaboBank.

“Signs of weakness in the U.S. labour market have boosted expectations for a Fed rate cut in September, though these forecasts are being clouded by the debate about whether the drop in job applications is a function of slowing supply or weaker demand on the back of Trump immigration policies,” she added.

U.S. Treasury yields plummeted in early August as data prompted investors to increase bets that the Fed will kick off a new easing cycle next month.

German 10-year yields (DE10YT=RR) were up one basis point at 2.69%, having ended last week up 1 basis point. Yields on Bunds, which serve as the benchmark for the wider euro zone, have barely budged this month.

Commerzbank noted euro zone bond supply this week was expected to be the smallest so far this year, with just a re-opening of German 10-year Bunds and Finnish 10-year and 15-year government debt.

Italy has cancelled auctions of three-year, seven-year and ultra-long debt, while Portugal will also stay put, strategists at the bank said.

Elsewhere, 10-year Italian yields IT10Y were up 0.5 bps at 3.51%, while French 10-year yields (FR10YT=RR) rose one bp to 3.36%.