Euro Zone Bond Yields Dip Amid Tariff Tensions

Euro zone bond yields fell on Tuesday, reversing a previous rally driven by safe-haven demand. Traders are anticipating the U.S. President's tariff announcement and euro zone economic data releases. Germany's 10-year bond yield dropped 2 basis points, while Italy's fell 3 basis points.

Euro zone bond yields experienced a slight decline on Tuesday, retracting from an earlier increase influenced by safe-haven buying. Market participants are bracing for U.S. President Donald Trump's announcement regarding tariffs expected on Wednesday, alongside crucial euro zone PMI and flash CPI data.

Germany's benchmark 10-year bond yield decreased by 2 basis points, settling at 2.708%, though it remained above Monday's one-month low of 2.659%. Italy saw its 10-year yield decrease by 3 basis points, landing at 3.832%.

In contrast, Germany's interest rate-sensitive two-year bond yield held steady at 2.03%, showing no change.

(With inputs from agencies.)