Eurozone Bond Yields Hold Steady Amid Trade Tensions and Rate Expectations

Eurozone government bond yields were mixed on Monday after a recent increase, as investors monitored key U.S. data and trade developments following last week's talks between the U.S. and China.

The two-week rise in borrowing costs was attributed to signs of a hawkish stance from the Federal Reserve alongside a lackluster European Central Bank (ECB) meeting. Upcoming U.S. manufacturing data is drawing significant attention due to the ongoing shutdown.

Germany's 10-year yields, a benchmark for the euro area, held steady at 2.64%. ECB policies remain stagnant, with U.S.-China trade talks influencing market dynamics. Concerns over the ECB's inflation target resurfaced as traders bet on rate cuts in light of easing trade tensions and stronger data.