Euro Zone Bond Yields Edge Higher Amid Fed Signals and ECB Steadiness
Euro zone government bond yields saw a second consecutive weekly rise due to hawkish cues from the Federal Reserve and a steady European Central Bank meeting. Despite unchanged ECB interest rates, borrowing costs increased as traders interpreted economic signals, particularly in Germany's bond yield movements.
Euro zone government bond yields are experiencing a weekly rise for the second time, spurred by hawkish indications from the Federal Reserve and a consistent European Central Bank (ECB) meeting. The ECB maintained interest rates at 2%, reaffirming a stable economic policy amid receding risks and the euro zone's resilient response to uncertainty.
Following stronger-than-anticipated purchasing managers' index data, borrowing costs in the euro area climbed last Friday, with Germany’s 10-year Bund yields adding 1.5 basis points to stand at 2.65%, marking a week-long increase of 2.5 basis points.
Traders moderated expectations for future ECB rate cuts, influenced by the Federal Reserve's meeting, with steady market positioning post the ECB's policy declaration and President Christine Lagarde's remarks. The probability of an ECB rate cut saw a slight increase, with the key rate projected to reach 1.90% by December 2026 from its current 2%.
ALSO READ
-
Eurozone Bonds React to Fed's Hawkish Signal
-
Euro zone bond yields rise to almost three-week high after bloc GDP data
-
UPDATE 6-China stocks down as Trump-Xi trade deal yields few surprises
-
Euro zone bond yields rise to two-week high after Fed meeting
-
UPDATE 5-Chinese stocks fall as Trump-Xi trade deal yields few surprises
Google News