Eurozone Bond Yields Move Higher
Government bond yields across the Eurozone rose today. The global stock markets reacted with calm on US tariffs on $34 billion in Chinese imports, reducing the appeal of safe-haven debt in the bloc. Eurozone 10-year bond yields were just 1-2 basis points higher on the day.
Germany's benchmark 10-year bond or Bund yield was up just over a basis point at 0.31%. German 10-year bond yields dipped to five-week lows on Monday, pushed down by political uncertainty in Germany, trade war fears. The yield on Germany’s benchmark 10-year Bund yield fell to 0.289%.
Government bond yields in the euro area were broadly higher on Thursday, following a report that some European Central Bank policymakers are uneasy that markets are only pricing in a rate rise for late next year.
Today’s data showed, that German industrial output rose in May. The German Economy Ministry reported, that industrial output jumped 2.6% in May, the highest rise since November. The reading exceeded economists’ forecast for a rise of 0.3%. The figure for April was revised to a fall of 1.3% from a previously reported fall of 1.0%. Compared with May last year, production surged 3.1%.