Market Focus: Euro Zone Bonds Respond to Tariff News
Market anxiety heightens as Euro zone bond yields rise amid anticipation of U.S. tariff changes. President Trump's expected tariff list remains uncertain, affecting volatility. Economic indicators show positive momentum, with Euro zone confidence peaking and unexpected German industrial growth, as the European Central Bank holds steady ahead of its meeting.
Euro zone bond yields rose on Monday, driven by market anticipation of changes in U.S. tariffs, as the July 9 deadline remains in focus, albeit slightly delayed. Germany's 10-year Bund yields climbed 2 bps to 2.583%, mirroring trends in U.S. Treasuries, which stand at 4.3556%.
Mohit Kumar, chief financial economist for Europe at Jefferies, notes market uncertainty hinges on President Trump's impending tariff decisions. Trump announced on Sunday the U.S. was finalizing trade agreements, with countries to be notified of increased tariff rates by July 9, taking effect August 1.
Euro zone markets are eyeing details to see if they will feature on the tariff list, with heightened expectations of market volatility as the deadline looms. In economic news, German industrial production exceeded expectations, bolstered by automotive and energy sectors, while Euro zone investor sentiment surged in July, reaching a three-year high.
(With inputs from agencies.)
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