LONDON: Euro zone government bond yields edged higher on Wednesday, shaped by the broad global mood, with Treasury yields rising on worries about the US fiscal position, super-long Japanese yields at record levels, and UK inflation above expectations.
Germany’s 10-year yield rose 2 basis points to 2.62%, as the euro zone benchmark underperformed Germany’s rate-sensitive two-year yield which was fractionally higher at 1.85%.
Long-dated bond yields are rising around the world, and the 10-year US Treasury yield was 4 bps higher at 4.52% on Wednesday, close to Monday’s one-month high, on concerns that a tax-cut bill being debated in Congress will worsen the US budget deficit at a faster pace than previously expected.
Euro zone government bond yields edge up, taking cues from US Treasuries
Japanese super-long yields have also moved sharply higher this week.
Italy’s 10-year yield, seen as the benchmark for the euro zone periphery, was nearly 2 bps higher at 3.63%.
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