Eurozone Bond Yields Steady as Trump Tariff Decision Looms

Eurozone bond yields remained stable as markets awaited U.S. President Trump's announcement of new tariffs. German yields fell amid investor caution, with an anticipated 20% tariff. The European Union plans to retaliate, while inflation concerns impact economic forecasts. Safe haven assets and monetary policy shifts are pivotal in this scenario.

Eurozone bond yields held steady on Wednesday as the financial world eagerly awaited U.S. President Donald Trump's unveiling of new reciprocal tariffs. These tariffs could potentially escalate global trade tensions, with precise details to be revealed during a ceremony scheduled at the White House.

The benchmark German 10-year bond yield fell slightly, indicating cautious investor behavior amid speculation that Trump might announce a universal 20% tariff. Investors sought refuge in gold and bonds while the market braced for what Trump coins 'Liberation Day'.

Meanwhile, the European Union indicated its readiness to strike back against any tariffs imposed by the U.S., although it expressed a preference for negotiation. Economic forecasts in the eurozone are under pressure as money markets expect potential ECB interest rate cuts, complicating the economic landscape further.

(With inputs from agencies.)