Euro Zone Yields Edge Higher Amid Global Uncertainty

Euro zone bond yields rose slightly on Thursday following the U.S. Federal Reserve's decision to hold interest rates steady, while geopolitical tensions in the Middle East kept investors on edge. The Federal Reserve's decision was anticipated, with Chair Jerome Powell highlighting potential tariff-driven price increases in the months ahead.

Financial markets remain wary amid concerns over a potential U.S. involvement in the ongoing Israel-Iran air conflict. Investors are also eyeing impending policy announcements from central banks in Switzerland, Norway, and the UK, which are expected to influence market movements later in the day.

Germany's 10-year bond yield saw a modest increase, reflecting recent market volatility, while Italy's benchmark yield also rose, widening the spread between Italian and German bonds. Attention is focused on the Swiss central bank, which is anticipated to cut its policy rate, and the Norges Bank and Bank of England's policy outlooks for the remainder of the year.

(With inputs from agencies.)