Euro zone bond yields edge up after U.S. jobs data

But U.S. bond yields dipped on Monday, with benchmark 10-year Treasury yields back near pre-Friday levels. On Tuesday, the first day of trading in the euro zone after the Easter holiday, Germany's 10-year yield, the benchmark for the bloc, was up 2 basis points at 0732 GMT to -0.31%.

Reuters | Washington DC | Updated: 06-04-2021 13:25 IST | Created: 06-04-2021 13:22 IST
Euro zone bond yields edge up after U.S. jobs data
Representative image Image Credit: Flickr

Eurozone bond yields rose on Tuesday as they digested better-than-expected U.S. employment data released on Friday when European markets were closed for the Easter holiday. The data showed the U.S. economy had created the most jobs in seven months in March, beating expectations, as more Americans got vaccinated and the government doled out additional pandemic relief money, marking the start of what could be the strongest economic performance this year in nearly four decades.

That pushed U.S. Treasury yields higher across the curve on Friday, and as much as 6 basis points on five-year Treasuries. But U.S. bond yields dipped on Monday, with benchmark 10-year Treasury yields back near pre-Friday levels.

On Tuesday, the first day of trading in the eurozone after the Easter holiday, Germany's 10-year yield, the benchmark for the bloc, was up 2 basis points at 0732 GMT to -0.31%. "Thanks to yesterday's decline in U.S. Treasury yields, any upward pressure on Bund yields stemming from spillover effects is likely to be limited," UniCredit analysts told clients.

European bond traders closely follow developments in U.S. Treasuries, like bonds in the two regions trade in close correlation. That caused worry in February when a sharp rise in Treasury yields on expectations that a vast stimulus package would reignite growth and inflation also sent euro area borrowing costs higher, a move seen as less justified given the bloc's weaker economic outlook coming out of the pandemic.

In terms of data releases, investors will be watching eurozone unemployment and investor sentiment data. Focus this week will be on the European Central Bank, which is expected to release monthly data on its conventional asset purchases and the bi-monthly breakdown of its pandemic emergency bond purchases on Wednesday, followed by the minutes for its March meeting on Thursday.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

LG Uplus partners with Nokia to expand 5G coverage in South Korea

Nokia on Monday announced the signing of an agreement with LG Uplus to expand and enhance the latters 5G network in South Korea, enabling seamless 5G connectivity between indoor and outdoor locations.We are delighted to have been chosen by ...

US: Authorities say no one was driving Tesla before deadly crash

Two people were killed in the fiery crash of a Tesla and authorities say there was no one in the drivers seat, although it is not clear whether the cars driver-assist system was being used.A Harris County constable told television stations ...

Vera Gedroits: Google Doodle to tribute Russian surgeon & professor on her 151st birthday

Happy Birthday, Vera GedroitsToday Google dedicates a beautiful doodle to celebrate Russian surgeon, professor, poet, and author Dr. Vera Gedroits on her 151st birthday. Dr. Gedroits is credited as the countrys first female military surgeon...

Australia-New Zealand travel bubble brings relief, elation

Elation marked the opening on Monday of a long-anticipated travel bubble between Australia and New Zealand.The start of quarantine-free travel was a relief for families who have been separated by the coronavirus pandemic as well as to strug...

Give Feedback