Eurozone Bond Yields Rise Amid US Credit Downgrade Concerns
Eurozone government bond yields increased, influenced by U.S. Treasury activities following a Moody's downgrade of the U.S. credit rating, raising fiscal policy concerns. Germany's 10-year yield, a benchmark in the region, edged up by 1 basis point to 2.59%. U.S. Treasury yields also saw a rise, with a notable peak in the 10-year.
The eurozone government bond yields slightly increased on Monday, mirroring movements in U.S. Treasuries amidst concerns sparked by Moody's recent downgrade of the U.S. credit rating. This shift underscores apprehensions about future fiscal policies on both sides of the Atlantic.
Germany, holding the euro area's benchmark 10-year yield, saw an increment of one basis point to 2.59%, a figure that nearly reached a high unseen since April 10 at 2.70% last week. Meanwhile, in early London trading, U.S. Treasury yields rose with the 10-year yield climbing to 4.52%.
Further highlighting market responses, German 2-year yields, which are highly sensitive to ECB policy rates, ticked up to 1.94%, while Italy's 10-year yield increased to 3.63%. The spread between Italian and German yields, a key measure of risk perception, stood at 97 basis points, showing a marginal increase from last week's lows.
(With inputs from agencies.)
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