Euro Zone Yields Rise Amid Global Monetary Policy Shifts

Euro zone bond yields edged higher on Thursday, amidst a series of global monetary policy decisions and tensions in the Middle East. The Federal Reserve's decision to keep U.S. interest rates steady, paired with Chair Jerome Powell's anticipation of tariff-driven price hikes, captured investors' attention.

In Europe, monetary policy shifts continued as Norway's central bank surprised markets with a 25 basis points rate cut, dropping borrowing costs to 4.25% for the first time in five years. This led to a significant drop in 3-year Norwegian bond yields. Attention was further drawn to potential U.S. involvement in the growing Israel-Iran conflict.

The European Central Bank (ECB) hinted at potential rate cuts in the coming months, bolstered by current economic indicators. Meanwhile, Germany's 10-year bond yield rose 2 basis points, with Italy's yields making the euro zone periphery benchmark by climbing 3 basis points.

(With inputs from agencies.)