LONDON: Euro zone bond yields moved lower on Friday, at the end of a busy week in which they had to digest major central bank meetings, the US election and the collapse of the German government, and which has left them set for a small weekly rise.
Germany’s 10 year yield, the benchmark for the euro zone, was last down 2 basis points at 2.42%.
It is up around one basis point on the week. Friday’s fall was partly a catch up with US treasuries. The US 10 year yield finished a volatile Thursday down 8 bps and was a whisker lower on Friday at 4.34%.
Euro zone yields inch up, US election keeps traders in check
That move was partly an unwind of some of Wednesday’s large jump on former President Donald Trump’s victory in Tuesday’s election, said analysts, as well as being affected by the Federal Reserve cutting rates by 25 bps as expected.
European investors were also processing the implications of Wednesday’s collapse of the German ruling coalition, with opposition parties and business groups urging Chancellor Olaf Scholz to trigger a new election quickly.
The German two year yield was 2 bps lower at 2.41% and Italy’s 10 year yield was 5 bps lower at 3.69% .
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