Euro Zone Bond Yields Rise Amid U.S. Tariff Relief

On Monday, euro zone government bond yields experienced a modest rise as the U.S. withdrew its threat to impose 50% tariffs on European imports, alleviating concerns over a potential economic slowdown.

President Donald Trump announced an extension of the deadline for negotiations with the European Union to reach an agreement. The German 10-year yield increased by 3 basis points to 2.60%, recovering from a decline on Friday.

Thin trading volumes were anticipated since markets in the U.S. and Britain were closed for holidays. Money markets projected an ECB deposit rate of 1.70% in December, slightly higher than Friday's figure. The Italian 10-year yield saw a minor increase, following Moody's improved outlook.

(With inputs from agencies.)