Euro Zone Bonds Surge Amid Positive Trade Deal Speculation
Euro zone bond yields increased as optimism grew over a potential trade agreement between the European Union and the United States and ahead of the European Central Bank's policy decision. Markets anticipate a 15% tariff on EU exports to the U.S., avoiding harsher levies.
In a positive turn for financial markets, euro zone bond yields rose significantly on Thursday due to growing expectations of a trade deal between the European Union and the United States. This sentiment was bolstered by indications that the European Central Bank would maintain its current interest rate policy.
According to EU diplomats, the bloc is nearing an agreement that would impose a 15% tariff on exports to the U.S., warding off a looming 30% tariff due in August. Despite the U.S. labeling such talk as speculative, market confidence in a deal remains strong.
Germany's benchmark 10-year yield experienced notable gains, reflecting the broader trend across the euro zone. Enhanced business activity in service and manufacturing sectors contributed to this economic optimism, as shown by the rise in the Purchasing Managers' Index.
(With inputs from agencies.)
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