Eurozone Bund Yields Near Highs Amid Economic Concerns

Eurozone benchmark Bund yields are near a four-week high due to moves in U.S. Treasuries. Concerns persist about Germany's economy, with industrial production rising less than expected. The ECB considers interest rate moves, while the BoE faces a tough rate decision amid economic and inflation concerns.

Eurozone benchmark Bund yields hovered near a four-week high on Thursday, aligning with moves in U.S. Treasuries as investors anticipated the Bank of England's policy decision. German 10-year yields hit 2.676% before settling at 2.66%, their highest since October 10.

Germany's economy remains a concern after disappointing industrial production data, with the Bundesbank cautioning about rising financial stability risks. Economists predict increased fiscal stimulus and modest pro-growth policies will help improve economic performance slightly in the coming quarters.

The European Central Bank is advised to keep its interest rate options open, facing a 45% likelihood of a 25-basis-point rate cut by September. Meanwhile, China's commerce ministry signals potential trade talks with the EU, and Germany's 2-year yields, influenced by ECB rate expectations, fell slightly.

(With inputs from agencies.)