Eurozone Bond Yields Show Uptick Amid Fed's Policy Meeting
Eurozone government bond yields saw a slight increase this week as the U.S. Federal Reserve policy meeting and job data boosted interest in risky assets. German 10-year Bund yields remained stable at 2.19% but tracked higher by four basis points. Investors anticipate further rate cuts by the European Central Bank.
Eurozone government bond yields exhibited a slight uptick this week, driven by a surge in investor interest following the U.S. Federal Reserve's policy meeting and jobs report. This data has kindled an appetite for riskier assets.
Specifically, German 10-year Bund yields held steady at 2.19%, although they were on track to finish the week up by four basis points. Bond prices, which move inversely to yields, responded accordingly.
Market sentiment suggests a 25 basis point rate cut by the European Central Bank in December, with a 25% likelihood of an additional cut within the year. Germany's 2-year Schatz yields remained flat at 2.22%, also primed to end the week up a single basis point. Notably, Italian 10-year yields fell by 1.5 basis points to 3.54%, maintaining a premium over Bunds at 134 basis points.
(With inputs from agencies.)
ALSO READ
Investors Anticipate Federal Reserve Interest Rate Decision Amid Economic Data
Mixed Markets Close as Investors Eye Key Jobs Data
Global Investors Eye U.S. Jobs Data Amid Economic Uncertainty
Market Volatility as Investors Await Crucial Jobs Data
Market Mayhem: Investors Lose Over Rs 5.49 Lakh Crore Amid Global Sell-Off