Euro Zone Bond Yields Climb Amid Easing Trade Tensions
Euro zone government bond yields climbed to multi-week highs as easing trade tensions reduced concerns about economic growth. This rise follows a U.S.-China trade deal and ECB comments against further rate cuts. Meanwhile, U.S. Treasury yields varied amid inflation worries impacting market movements.
Euro zone government bond yields reached new multi-week highs on Wednesday as easing trade tensions alleviated fears regarding economic growth.
Although the economic data calendar was sparse, analysts observed that the upcoming U.S. economic reports on Thursday could offer additional insights into the tariff impacts. Earlier, Euro area borrowing costs spiked following a preliminary trade accord between the U.S. and China, alongside remarks from European Central Bank board member Isabel Schnabel advising against further rate reductions.
Germany's benchmark 10-year yield increased by 1.5 basis points to 2.691%, marking its highest since April 10. Money markets have predicted the ECB's deposit rate to climb to 1.80% by year-end. U.S. Treasury yields saw fluctuations as inflation worries persisted, while Italy's 10-year yield changes reflected broader market dynamics.
(With inputs from agencies.)
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