Eurozone Yields Tumble Amid Economic Uncertainties

Bund yields in the euro area dipped, counteracting previous increases, as markets took into account upcoming U.S. economic data. The European Commission predicts faster-than-expected growth in 2025 due to export surges, while the Federal Reserve and European Central Bank policies remain under scrutiny.

In a shift from last session's upward trend, the euro area benchmark Bund yields retracted on Monday, reflecting market participants' patience as they await clearer economic data from the United States. Anticipation builds as September's U.S. payroll data is slated for release later this week.

Germany's 10-year yield experienced a minor decline of 0.5 bps to 2.71%, following its previous high of 2.718%. The European Commission on Monday projected that the eurozone economy would experience faster growth in 2025, largely driven by significant export activity in the year's first half.

Investors remain cautious as key U.S. economic indicators expected to shape Federal Reserve policies, including the consumer price index, are awaited in December. Market speculation about potential rate cuts by the Federal Reserve and European Central Bank continue to fluctuate.

(With inputs from agencies.)