Euro Zone Bond Yields Climb Amid Global Economic Uncertainty

Euro zone government bond yields increased after a two-week climb, influenced by U.S.-China trade developments and anticipated U.S. economic data. German 10-year yields reached their highest since October, while French debt faces scrutiny due to fiscal concerns. French lawmakers rejected a proposed wealth tax on the ultra-rich.

Government bond yields across the euro zone rose Monday as investors focused on upcoming U.S. economic data and reacted to the nuanced truce between the United States and China.

Wednesday marked the second consecutive week of rising borrowing costs in the euro area, spurred by signs that both the Federal Reserve and the European Central Bank are adopting a hawkish stance. Within this context, the U.S. manufacturing ISM data release later in the day is eagerly anticipated by investors.

Germany's 10-year bond yields increased by 0.5 basis points to 2.64%, having reached its highest point since October last week. Meanwhile, French lawmakers dismissed a proposed wealth tax targeting the ultra-rich, maintaining focus on the nation's complex fiscal strategy amid these turbulent times.

(With inputs from agencies.)