Euro zone bond yields rose on Friday as markets continued to digest Thursday’s hot U.S. inflation print while awaiting the Alaska summit between U.S. President Donald Trump and Russian President Vladimir Putin later on Friday.
German 10-year yields (DE10YT=RR) were up 4 basis points at 2.7453%, while rate-sensitive German 2-year yields (DE2YT=RR) were up 1 bp at 1.9506%.
Germany’s 10-year yield rose 7 bps on Thursday after the hot U.S. inflation figures.
“That could really be the reason that this trend is continuing from yesterday … the dynamic was driven by the PPI in the U.S.,” said Christian Reicherter, an analyst at DZ Bank.
On Thursday, U.S. producer price data came in stronger than expected, renewing inflation concerns and prompting traders to scale back Federal Reserve rate cut bets.
The key inflation tracker increased by the most in three years in July amid a surge in the cost of goods and services, suggesting a broad…
