Euro Zone Bonds See Uptrend Amid U.S. Fiscal Worries

German long-term bond yields climbed to a two-month high on Thursday, reflecting investor fears over the United States' fiscal future. A lackluster response to a recent U.S. Treasury auction heightened concerns, linked to President Donald Trump's advancing tax bill.

Lombard Odier's chief economist, Samy Chaar, remarked that the budget lacks appeal for foreign investors and offers fewer macroeconomic benefits, driving demand for a lending premium.

Across the eurozone, bond yields rose slightly, with Germany's long-term bonds leading the underperforming pack. Meanwhile, soft demand for U.S. Treasury bonds and Moody's credit rating downgrade added to the pressure, amid a broader global economic slowdown.

(With inputs from agencies.)