Euro Zone Bonds Steady Amid Global Market Shifts

Euro zone bonds remained stable on Thursday as geopolitical tensions and Japanese bond market upheaval eased. German bond yields stayed flat, while shorter-dated bonds rose slightly. A reversal from earlier 'bear steepening' moves occurred as tariff concerns diminished. Japanese bond markets also retained calmness, with expectations of stable interest rates.

Euro zone bonds held their ground on Thursday, with long-term bond yields slightly retracting as short-term yields rose after calming geopolitical tensions and a quieter Japanese bond market. A recent sell-off in Japanese bonds had contributed to a global sell-off earlier this week.

President Trump's pivot on tariffs and a rally in Japanese government bonds over the past two sessions helped stabilize euro zone bond prices. Germany's 10-year bond yield, a key indicator, remained steady at 2.8791% after previously increasing five times.

Amid a quieter market environment, euro zone inflation and GDP concerns were allayed as tariff tensions eased. The recent bond market adjustments reflect this, with analysts noting a market shift away from 'bear steepening'.

(With inputs from agencies.)