Euro Zone Bonds Edge Lower Amid US-EU Trade Talk Anticipation
Euro zone bond yields slightly decreased as a strong U.S. Treasury auction provided global support, while investors awaited U.S.-EU trade talk outcomes. Germany's 10-year yield fell to 2.62%, and Italy's to 3.54%. A potential EU trade deal could further influence market trends.
- Country:
- United Kingdom
In early Thursday trading, euro zone bond yields dipped slightly, buoyed by a robust U.S. Treasury auction that offered global support. Germany's 10-year yield, regarded as the currency bloc's benchmark, decreased by 1 basis point to 2.62%. Previously, it had reached a six-week high of 2.668% before gradually declining.
Investors in the euro zone adopted a wait-and-see approach as they anticipated the results of the U.S.-EU trade discussions. EU trade chief Maros Sefcovic indicated that significant progress on a framework agreement had been made, potentially culminating in a deal within days.
Meanwhile, after European markets closed, the U.S. bond auction dominated market activities. The Treasury witnessed strong demand for its $39 billion sale of 10-year notes, alleviating concerns about a potential investor pullback. This led U.S. yields to decrease, in turn influencing euro zone market dynamics. Italy's 10-year yield mirrored Germany's trend, settling at 3.54%.
(With inputs from agencies.)
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