Bund Yields Decline Amidst U.S. Treasury Movement

Euro zone's Bund yields are set for a second weekly decline, influenced by U.S. Treasuries and new U.S. economic data. The yield spread between U.S. and German 10-year bonds is narrowing. European yields are reacting to ECB policy outlook while Italy's 10-year bond yield also sees a slight rise.

Euro zone's benchmark Bund yields showed a downward trend for the second consecutive week, reflecting movements in the U.S. Treasury market. This comes after the resolution of the U.S. shutdown and the release of fresh economic data.

German bonds saw a modest decline compared to their U.S. counterparts, with the gap between 10-year Treasuries and Bunds narrowing significantly. On April 2, U.S. President Donald Trump announced new trade duties, which affected U.S. government bonds adversely.

Germany's 10-year yields, the euro region's standard, were on a slight increase but are still anticipated to see a weekly drop. U.S. Treasuries also saw some fluctuations with the market anticipating a Federal Reserve interest rate cut. Meanwhile, Germany's and Italy's bond yields showed variations based on ECB policy expectations.

(With inputs from agencies.)