Euro Zone Bond Yields Decline Amidst Inflation and Trade Jitters
Euro zone bond yields fell after a drop in French inflation and ongoing U.S. trade concerns. The euro area's economic sentiment improved, while U.S. stock markets rose as trade tensions eased. Policymakers from the ECB discuss interest rate changes, with another potential rate cut expected soon.
Euro zone bond yields saw a decline on Tuesday following weaker-than-anticipated French inflation figures, amid persisting worries about the adverse economic effects of U.S. tariffs.
French inflation reached its lowest point since December 2020 in May, largely due to a significant decrease in energy prices and a slowdown in service costs. Meanwhile, Germany's 10-year government bond yield, the euro area benchmark, decreased by 2 basis points to 2.54%.
The European Central Bank (ECB) appears to be contemplating further interest rate adjustments, with markets anticipating a high likelihood of an ECB rate cut in the coming week, signaling potential additional easing measures before the year-end.
(With inputs from agencies.)
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