Euro Zone Bond Yields Dip Amid Mixed U.S. Jobs Data and Political Developments
Euro zone bond yields dropped as U.S. job growth in June exceeded expectations but was revised down for May. Wage growth also fell, fueling expectations of a Federal Reserve rate cut. Meanwhile, bond yields across Germany, France, and Italy showed changes, influenced by political and economic events.
![Euro Zone Bond Yields Dip Amid Mixed U.S. Jobs Data and Political Developments](https://devdiscourse.blob.core.windows.net/aiimagegallery/05_07_2024_06_28_34_6571626.png)
Euro zone bond yields dipped on Friday as U.S. job growth data for June showed higher-than-expected figures, but May's numbers were revised downward, reinforcing expectations of a Federal Reserve interest rate cut later this year.
U.S. nonfarm payrolls grew by 206,000 in June, surpassing the 190,000 anticipated by economists. However, May's figures were adjusted from an initial estimate of 272,000 down to 218,000. Additionally, wage growth year-on-year fell to 3.9% in June from 4.1% in May.
Germany's 10-year bond yield, considered a benchmark for the euro zone, decreased by 3 basis points to 2.554%, while France's and Italy's bond yields also saw declines. Mounting political developments, including France's election and the UK's general election outcomes, further influenced market reactions.
(Disclaimer: With inputs from agencies.)
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