Eurozone Bonds: Steady Yields Amid U.S. Market Fluctuations

The Euro area benchmark Bund yields remained stable amid mixed signals from U.S. Treasuries. Germany's 10-year yields slightly increased while Italy's 10-year bond yields rose, narrowing the gap with Bunds. The spread between U.S. Treasuries and Bunds saw a small weekly increase.

The benchmark Bund yields in the Euro area set a stable course by week's end, following mixed trends in U.S. Treasuries that were influenced by conflicting economic signals. Germany's 10-year yields saw an increase, hitting 2.82%, marking a 0.5 bps decline over the week.

Yields from the previous week had dropped significantly; the sharpest since March. Concurrently, the U.S. 10-year Treasury note experienced a slight rise amid new robust economic data, contrasting softer readings earlier in the week.

The spread between U.S. Treasuries and the Bunds saw a minimal weekly gain, reaching levels not seen since mid-December 2023. Italy's 10-year government bond yields rose slightly, narrowing its gap with Bunds, signifying changes in market expectations.

(With inputs from agencies.)