Euro Zone Bond Yields React to US-China Trade Developments

Euro zone bond yields reached near one-month highs due to decline in interest rate cut expectations from the European Central Bank. This follows a de-escalation in the U.S.-China trade war, impacting global economic forecasts. Investors focus on Germany's ZEW survey and U.S. Consumer Prices Index for new insights.

Euro zone bond yields edged closer to one-month highs as investors reconsidered their expectations for interest rate cuts by the European Central Bank, sparked by a quicker-than-anticipated easing in the U.S.-China trade war.

The benchmark German 10-year yield increased to 2.65%, while the two-year yield rose to 1.93%, its most significant levels since April 10.

Attention now shifts to Germany's ZEW survey and the U.S. Consumer Prices Index, which may reveal further impacts of the trade tensions on economic prospects.

(With inputs from agencies.)