Euro zone bond yields inch higher after inflation-driven drop
Euro zone bond yields edged higher after a sharp drop the previous day on the back of weaker-than-expected US inflation data.
German 10-year bond yield, the benchmark for the euro zone bloc, rose 2 basis points (bps) to 2.493%, but was on track to end the week around 4 bps lower after dropping 7 bps on Thursday. Yields move inversely to prices.
France’s 10-year bond yield, which has been in focus after Sunday’s election resulted in a hung parliament, rose 2 bps to 3.149% but was on track to finish the week 6 bps lower.
The spread between French and German borrowing costs was steady at 65 bps.
Italy’s 10-year yield was also up 2 bps at 3.814%, and the gap between Italian and German bond yields stood at 132 bps.
Germany’s two-year bond yield, which is more sensitive to European Central Bank rate expectations, was 2 bps higher at 2.819%.
Article Source – Euro zone bond yields inch higher after inflation-driven drop – RTE