Euro Zone Bond Yields Dip Amid U.S. Jobs Data Revisions

Euro zone bond yields fell on Friday after U.S. jobs growth data showed moderation and downward revisions for May. U.S. non-farm payrolls rose more than expected in June, but May’s figures were revised lower. The data influenced bond yields in Germany, France, Italy, and the UK, reflecting investor sentiment.

On Friday, euro zone bond yields declined following U.S. jobs growth data that indicated a slowdown in June and a downward revision for May. U.S. non-farm payrolls increased by 206,000 in June, surpassing the 190,000 expected by economists, yet May's job growth was scaled back to 218,000 from an initial 272,000 estimate.

Wage growth also showed a year-on-year decrease to 3.9% in June from 4.1% in May. Germany's 10-year bond yield, a benchmark for the euro zone, fell by 4 basis points to 2.542%, while France's 10-year yield dipped 6 basis points to 3.22%, set to end the week 7 basis points lower. This helped narrow the borrowing cost gap between France and Germany.

The bond markets reacted minimally to Britain's general election, which saw Labour's Keir Starmer secure a significant victory. UK bond yields aligned with broader European trends, declining around 4 basis points. Meanwhile, the pound and UK mid-cap stocks saw gains.

(With inputs from agencies.)