Euro Zone Bond Yields Climb as Markets Eye U.S. Jobs Data

Euro zone government bond yields rose, led by Germany's 10-year yield, as traders anticipated U.S. jobs data. Yields mirrored U.S. Treasuries' rise post a strong manufacturing report. Economists forecast slower U.S. job growth following April's tariff announcements, with Euro zone inflation data indicating easing price pressures.

Euro zone government bond yields increased on Friday, reflecting the movement seen in U.S. Treasuries after markets were closed in Europe for a holiday. Investors are gearing up for the upcoming U.S. jobs numbers, crucial data for global financial markets.

Germany's 10-year bond yield, a benchmark for the euro area, climbed 5 basis points to 2.49%, maintaining its position at the lower end of its recent spectrum. Traders attribute the rise to expectations of the European Central Bank reducing interest rates to reinforce the bloc's economy amid tariff-related challenges.

The primary focus will be on the U.S. non-farm payrolls report, the first since early April's tariff decisions. Economists predict a deceleration in job growth, with businesses still retaining workers. Concurrently, Euro zone inflation, especially from Germany, France, and Italy, points to easing price pressures.

(With inputs from agencies.)