LONDON: Euro zone bond yields nudged up in early trading on Tuesday, a muted reaction to the United States’ announcement of new tariffs on several trading partners as traders waited for further details and to see what would happen to the EU.
US President Donald Trump opened a new phase on Monday in the trade war he launched this year, telling partners including powerhouse suppliers such as Japan and South Korea that they would face sharply higher tariffs from August 1.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
Euro zone bond yields rise, Ukraine in focus
The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a “good exchange,” a commission spokesperson said.
Germany’s 10-year bond yield, the euro zone benchmark, rose just over 1 basis point to 2.62%. Italy’s 10 year yield rose nearly 2 bps to 3.54% , leaving the closely watched gap between the two at 90 bps.
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