Euro Zone Bonds on Edge as Trump Unveils New Tariffs

Euro zone bond yields remained almost unchanged as markets awaited President Trump's new reciprocal tariffs announcement. The German 10-year bond yield stayed at 2.685%, with the EU ready to retaliate but open to negotiation. Italian and French bond yields held steady.

On Wednesday, euro zone bond yields hovered around the same levels as markets braced for the announcement of U.S. President Donald Trump's reciprocal tariffs.

Investors focused on the German 10-year bond yield, which remained at 2.685% as a wave of uncertainty drove them towards safer assets. The European Union, led by Ursula von der Leyen, has prepared a retaliatory strategy against the impending tariffs, although they remain hopeful for negotiated resolutions.

Italian and French bond yields showed little movement, while Germany's two-year bond yield, more reactive to ECB rate decisions, also remained steady. The economic bloc is closely monitoring these developments as it seeks a balance between response and diplomacy.

(With inputs from agencies.)