LONDON, July 4 — Euro zone bond yields posted its largest weekly fall in a month on Friday as investors prepared for several days of uncertainty heading towards US President Donald Trump’s July 9 tariff deadline.
Germany’s 10-year benchmark Bund yield was down 3 basis points (bps) at 2.549 percent, having risen to an almost six-week high on Wednesday of 2.632 percent when UK gilt yields jumped due to renewed concerns over fiscal sustainability. Bond yields move inversely with prices.
Bunds were set for a weekly decline of 4 basis points, the largest since the week of May 26, according to LSEG data.
Britain’s 10-year gilt yield was down 1.6 bps on Friday at 4.525 percent, having risen as high as 4.681 percent on Wednesday.
Wednesday’s sharp collapse in British government bond prices was sparked by a U-turn on planned government cuts to welfare spending and a tearful appearance by finance minister Rachel Reeves in parliament.
US Treasury yields advanced after data showed the world’s largest economy created more jobs than expected last month, supporting the Federal Reserve’s patient stance on cutting interest rates this year.
In afternoon trading, US two-year yields, which track interest rate expectations, rose 9.7 basis points (bps) to 3.888 percent, and up 14.6 bps for the week, its largest weekly rise since early April. The benchmark 10-year yield, on the other hand, gained 5.3 bps to 4.346 percent. On the week, the 10-year yield advanced 6.3 bps, on track for its largest weekly gain in roughly a month.
LONDON, July 4 — Euro zone bond yields posted its largest weekly fall in a month on Friday as investors prepared for several days of uncertainty heading towards US President Donald Trump’s July 9 tariff deadline.
Germany’s 10-year benchmark Bund yield was down 3 basis points (bps) at 2.549 percent, having risen to an almost six-week high on Wednesday of 2.632 percent when UK gilt yields jumped due to renewed concerns over fiscal sustainability. Bond yields move inversely with prices.
Bunds were set for a weekly decline of 4 basis points, the largest since the week of May 26, according to LSEG data.
Britain’s 10-year gilt yield was down 1.6 bps on Friday at 4.525 percent, having risen as high as 4.681 percent on Wednesday.
Wednesday’s sharp collapse in British government bond prices was sparked by a U-turn on planned government cuts to welfare spending and a tearful appearance by finance minister Rachel Reeves in parliament.
US Treasury yields advanced after data showed the world’s largest economy created more jobs than expected last month, supporting the Federal Reserve’s patient stance on cutting interest rates this year.
In afternoon trading, US two-year yields, which track interest rate expectations, rose 9.7 basis points (bps) to 3.888 percent, and up 14.6 bps for the week, its largest weekly rise since early April. The benchmark 10-year yield, on the other hand, gained 5.3 bps to 4.346 percent. On the week, the 10-year yield advanced 6.3 bps, on track for its largest weekly gain in roughly a month.
