LONDON: Euro zone long-dated bond yields inched higher on Monday as investors turned their attention to the looming U.S. tariff deadline, with officials hinting at a possible delay beyond July 9.
Germany’s 10-year Bund yields rose 2 basis points to 2.584%, while U.S. 10-year Treasury yields remained steady at 4.3379%.
President Donald Trump stated on Sunday that the U.S. is nearing final trade agreements and will announce higher tariff rates by July 9, set to take effect on August 1.
This has kept markets on edge, anticipating potential volatility as details on trade policies emerge.
German two-year yields, sensitive to interest rate expectations, edged up slightly to 1.82%, hovering near a three-week low.
Meanwhile, Italian 10-year yields increased by 2.3 basis points to 3.493%, widening the spread over German Bunds to 90 basis points, according to LSEG data.
In the UK, the 10-year gilt yield held steady at 4.56%, still elevated after last week’s sharp sell-off triggered by a reversal in planned welfare spending cuts.
On a positive note, German industrial production exceeded expectations in May, driven by strong performance in the automotive and energy sectors, as reported by the federal statistics office.
Later in the day, European Central Bank policymakers Joachim Nagel and Robert Holzmann are scheduled to speak, potentially offering further insights into monetary policy direction. – Reuters
