Eurozone Yields Rise Amid US Sanctions and Trade Concerns
Eurozone government bond yields increased on Thursday despite US sanctions on Russia and potential trade restrictions on China. Investors are awaiting key US and Eurozone economic data, with a focus on the US consumer price index. German and Italian bond yields showed notable movements.
The eurozone government bond yields saw an uptick on Thursday. This happened even as the United States launched sanctions against Russia and considered imposing new trade restrictions on China. The recent rush towards safe-haven investment instruments has settled, turning investor focus towards upcoming economic data for guidance.
US President Donald Trump took decisive steps on Wednesday, sanctioning Russian oil firms Lukoil and Rosneft over ongoing tensions linked to Ukraine. The Trump administration is also weighing an escalation in its trade disputes with China by potentially curbing various software-driven exports, in retaliation for China's export restrictions on rare earth materials.
The eurozone's investors are awaiting upcoming consumer confidence data, while uncertainties persist due to the ongoing US government shutdown. US inflation data remains in the spotlight, with its consumer price index report expected to clarify rate cut expectations. Market movements indicate rising bond yields in Germany and Italy, leading to significant shifts in yield gaps.
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