Euro Zone Bonds Steady Amid Trade Deal Optimism
Euro zone government bond yields remained stable, poised for a first weekly decline in a month due to the EU's U.S. trade deal and a decline in the euro. As uncertainty over tariffs dissipated, bond yields drifted lower. The euro faced pressure, expecting a significant weekly drop.
Euro zone government bond yields remained stable on Wednesday, gearing up for their first weekly decline in a month. This stabilization follows investor reactions to the European Union's trade agreement with the United States and a notable drop in the euro's value this week.
The removal of much trade tariff uncertainty, after the EU-U.S. agreement setting a 15% levy on imported goods, has seen bond yields slightly decline throughout the week. Concurrently, China and the U.S. seek to extend their tariff truce following recent discussions aimed at easing the intensifying trade war.
Benchmark German 10-year yields fell less than 1 basis point, resting at 2.681%, and are down 3.5 basis points this week. This marks the first weekly decline since late June. Euro zone economic growth data revealed higher-than-expected resilience in Q2, growing by 0.1%, despite trade uncertainties.
(With inputs from agencies.)
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