Euro zone government bond yields ended Thursday lower with the focus on events outside the currency bloc, after U.S. jobs data blew past expectations, and the British gilt market after the previous day’s sharp selloff there.
Germany’s 10-year bond yield closed down 4 basis points at 2.578%, having touched an earlier low of 2.571%. (DE10YT=RR). Kenneth Broux, head of corporate research FX and rates at Societe Generale, said Thursday’s modest strength was a reversal of Wednesday’s “UK induced sell off and spike above 2.60%”.
Euro zone bonds got caught up in the gilt sell-off that was driven by renewed worries about the UK’s public finances and the future of finance minister Rachel Reeves.
Germany’s 10-year yield, the euro zone benchmark, rose 5 basis points on Wednesday.
British Prime Minister Keir Starmer said later on Wednesday that Reeves will be in post “for a very long time to come,”. Gilt yields were down around 8 basis…
