Euro Zone Bond Yields Surge Amid Global Debt Sell-Off

Euro zone government bond yields have surged, swept higher on Friday amid a broader global sell-off in longer-dated debt. This rise reflects growing investor belief that interest rates are unlikely to dip significantly in the near future.

U.S. President Donald Trump's tariffs, while less severe than initially feared, could prevent inflation from easing much further. Reports indicate that the euro zone economy is staying resilient, albeit with slower growth. German thirty-year yields rose by 4 basis points to 3.22%, mirroring shifts in 30-year U.S. Treasury yields.

Analysts from Commerzbank note that European bond markets are lacking decisive direction, with data keeping expectations in check. The U.S. monthly jobs report will be pivotal in setting the trajectory of interest rates moving forward, as discussions turn towards a possible rate hike in 2026.

(With inputs from agencies.)