Euro zone bond yields edged down slightly from their multi-month highs on Tuesday, while global yields remained elevated and the possible impact of the policies supported by the incoming administration led by Donald Trump stayed in focus.
Germany’s 10-year bond yield, the benchmark for the euro zone bloc, was down half a basis point (bp) at 2.586%.
On Monday it rose to 2.612%, the highest since July.
Yields move inversely to prices.
Yields have risen globally in recent weeks as investors pared bets for US rate cuts, while mulling over if policies from the incoming Trump government could boost inflation.
Euro zone bond yields hit new multi-month highs after US jobs data
Italy’s 10-year yield was 2 bps lower at 3.809%.
The gap between Italian and German yields held steady at 121 bps.
Germany’s two-year bond yield, which is more sensitive to European Central Bank rate expectations, was one bp lower at 2.283%.
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