Euro Zone Bond Yields Surge Amid Inflation Fears

Euro zone government bond yields hit multi-month highs as investors anticipate U.S. jobs data. Inflation concerns, driven by strong economic figures and potential U.S. tariffs, have increased borrowing costs. Germany and Italy see notable yield hikes, indicating market reactions to the changing economic landscape.

Euro zone government bond yields surged to new multi-month highs on Friday as investors awaited crucial U.S. jobs data, which could provide insights into the Federal Reserve's future monetary policy decisions.

Amid heightened economic performance and the looming threat of U.S. tariffs, inflation fears have intensified on both sides of the Atlantic, leading to rising borrowing costs.

Notably, Germany's 10-year government bond yield increased by three basis points to 2.559%, reaching its highest point since July 10, while long-term inflation expectations hovered around 2.11%.

(With inputs from agencies.)