Euro zone government bond yields rose on Monday as investors took a breather after a sharp fall late Friday triggered by U.S. President Donald Trump‘s threat of a “massive” hike in tariffs on Chinese imports.
Trump revived the trade war against Beijing on Friday, in a reprisal against China curbing its critical mineral exports.
Germany’s 10-year Bund yields, the bloc’s benchmark, rose one basis point (bp) to 2.64%, after dropping 7 bps on Friday.
Euro area borrowing costs had been in limbo in the last couple of weeks as a U.S. government shutdown and a well-established ECB rate outlook left markets with no clear direction.
Barclays noted on Friday that realised volatility of Bunds reached lows seen during the European Central Bank’s quantitative easing. U.S. Treasury yields fell to multi-week lows on Friday as investors fled risk assets and sought safety in government bonds. The U.S. fixed income market is closed on Monday for…
