Eurozone Bonds Shine Amid Global Trade War Tensions

Eurozone government bond yields fell as investors sought European safe havens amidst new U.S. trade restrictions. German 10-year yields are down, benefiting from market volatility, while U.S. Treasuries remain stable but less appealing. ECB's upcoming decisions and future tariff impacts remain key concerns.

Eurozone government bond yields dipped on Thursday as investors turned towards European safe havens amidst renewed global trade tensions.

Germany's 10-year bond yield fell by 5 basis points to 2.50%, marking a low point over the last week. The eurozone benchmark, benefiting from recent U.S. trade policy unease, traded near levels seen in March before Germany's fiscal policy shift caused fluctuations.

The stability of European markets compared to the U.S. has prompted increased demand for German Bunds as a hedge against global uncertainty. Meanwhile, U.S. Treasuries showed little movement despite regulatory discussions aimed at calming markets. The European Central Bank's focus on tariffs and rate cuts add to the economic uncertainty fueled by U.S. and China trade conflict.

(With inputs from agencies.)