By Stefano Rebaudo
Euro zone benchmark Bund yields dropped from their four-week high on Thursday, taking the lead from U.S. Treasuries after the Bank of England decided to keep rates on hold.
The BoE’s narrow vote and signs that Governor Andrew Bailey might soon join those seeking a rate cut increase the chances of an easing move in December.
Germany’s 10-year yields (DE10YT=RR) were down 2 basis points (bps) at 2.65% after hitting 2.676% early in the session, the highest level since October 10.
Benchmark 10-year U.S. Treasury yields US10Y fell 6 bps to 4.1% due to concerns over a weakening U.S. labour market as well as the prospect of more economic uncertainty caused by the government shutdown in Washington and questions over the legality of President Donald Trump’s tariffs.
Concerns about the German economy persisted after data showed industrial production rose less than expected in September, while the Bundesbank warned of…
