Euro Zone Bond Yields Rise Amid U.S. Inflation Concerns

Euro zone bond yields saw an uptick on Friday as the markets responded to the previous day's hot U.S. inflation report and awaited the Alaska summit between U.S. President Donald Trump and Russian President Vladimir Putin.

Germany's 10-year yields climbed 6.5 basis points to 2.77%, with the 2-year yields also rising by 2 basis points to 1.96%. This movement follows the U.S. producer prices report, which exceeded expectations and heightened inflation concerns.

With U.S. Treasury yields rising, a similar upward trend was observed in the euro zone. Italy's 10-year bond yield increased by 8.3 bps to 3.59%, narrowing the spread with German yields to the tightest level since at least 2011. Despite market activity, thin summer trading kept it quiet overall.

(With inputs from agencies.)