Latest news with #GermanBunds
Euronews
07-07-2025
- Business
- Euronews
European spending drops as trade tensions hit consumer wallets
Retail sales in the eurozone fell at their steepest monthly rate in nearly two years in May, as growing uncertainty over US trade tariffs weighed on consumer sentiment and curbed spending. According to first estimates released by Eurostat on Monday, the seasonally adjusted volume of retail trade decreased by 0.7% in the eurozone and by 0.8% across the EU in May, compared to April. The decline aligns with economists' forecasts but marks the sharpest drop since August 2023. The setback follows a modest rebound in April, when sales rose by 0.3% in the eurozone and by 0.8% in the wider European Union. On an annual basis, eurozone retail sales growth slowed from 2.7% in April to just 1.8% in May — the weakest expansion since July 2024. Sector breakdown and national trends Across the eurozone, all major retail sectors experienced contraction. Sales of food, drinks and tobacco fell by 0.7%, while non-food products — excluding automotive fuel — declined by 0.6%. Automotive fuel sales dropped the most, falling by 1.3% in specialised stores. In the broader EU, the declines were similarly spread, with food and beverage sales down 0.8%, non-food products dropping by 0.7%, and automotive fuel dipping 1.2%. Among EU member states, the most severe monthly contractions were seen in Sweden (-4.6%), Belgium (-2.5%) and Estonia (-2.2%). Meanwhile, Portugal (+2.1%), Bulgaria (+2.0%) and Cyprus (+1.0%) posted the strongest increases. Markets stay cautious as investors watch US trade moves European equity markets remained largely flat on Monday. The blue-chip Euro STOXX 50 hovered near 5,300 points, while the broader STOXX 600 was unchanged at 541, as investors awaited clarity on the direction of US trade policy. The euro edged down 0.3% to $1.1730, while yields on 10-year German Bunds held steady at around 2.57%. President Donald Trump is expected to issue a new wave of tariff warning letters later on Monday, targeting countries with trade surpluses with the United States. While the list of recipients remains undisclosed, Commerce Secretary Howard Lutnick confirmed that the "Liberation Day" tariff package originally scheduled for 9 July would now take effect on 1 August. Trump's administration had previously imposed a 20% import tax on EU-manufactured goods in April, but quickly reduced the rate to 10% as financial markets plummeted. However, a separate deadline to reach an agreement with the European Union before tariffs rise as high as 50% has now been set for Wednesday. So far, only China, the United Kingdom and Vietnam have managed to secure temporary exemptions through deals with Washington. Trump has warned that any country aligning with the 'anti-American policies' of the BRICS bloc will face an additional 10% tariff — with no exceptions.
The Sun
07-07-2025
- Business
- The Sun
Euro zone bond yields rise as U.S. tariff deadline looms
LONDON: Euro zone long-dated bond yields inched higher on Monday as investors turned their attention to the looming U.S. tariff deadline, with officials hinting at a possible delay beyond July 9. Germany's 10-year Bund yields rose 2 basis points to 2.584%, while U.S. 10-year Treasury yields remained steady at 4.3379%. President Donald Trump stated on Sunday that the U.S. is nearing final trade agreements and will announce higher tariff rates by July 9, set to take effect on August 1. This has kept markets on edge, anticipating potential volatility as details on trade policies emerge. German two-year yields, sensitive to interest rate expectations, edged up slightly to 1.82%, hovering near a three-week low. Meanwhile, Italian 10-year yields increased by 2.3 basis points to 3.493%, widening the spread over German Bunds to 90 basis points, according to LSEG data. In the UK, the 10-year gilt yield held steady at 4.56%, still elevated after last week's sharp sell-off triggered by a reversal in planned welfare spending cuts. On a positive note, German industrial production exceeded expectations in May, driven by strong performance in the automotive and energy sectors, as reported by the federal statistics office. Later in the day, European Central Bank policymakers Joachim Nagel and Robert Holzmann are scheduled to speak, potentially offering further insights into monetary policy direction. - Reuters
Business Recorder
20-06-2025
- Business
- Business Recorder
Euro zone yields on track for a weekly drop, Middle East in focus
Euro zone government bond yields were on track for a weekly decline as the Israel-Iran air war entered its eighth day, with investors downplaying inflation concerns while awaiting clarity on a potential US involvement in the conflict. President Donald Trump will make a decision in the next two weeks, the White House said on Thursday, raising pressure on Tehran to come to the negotiating table. German 10-year yields, which serve as the benchmark for the wider euro zone, fell 2.5 basis points (bps) to 2.49%, and were set to end the week 4.5 bps lower. Money markets priced in a European Central Bank deposit facility rate at 1.77% in December, compared with 1.75% last week. The yield on the German two-year bonds, which are more sensitive to expectations for ECB policy rates, was down 1.5 bps at 1.83%. Euro zone bond yields steady before Fed, traders await new catalysts A drop in appetite for risk assets widened yield spreads for government bonds of highly indebted countries, such as Italy and France, against safe-haven German Bunds. Italy's 10-year yields dropped 4.5 bps to 3.50%. Italian yield gap against Bunds - a market gauge of the risk premium investors demand to hold Italian debt – tightened to 100 bps on Friday, but was set for its biggest weekly rise in a year.
Business Recorder
27-05-2025
- Business
- Business Recorder
Euro zone yields edge down as tariff-turbulence ebbs
LONDON: Euro zone government bond yields dipped on Tuesday, ahead of a raft of regional inflation readings this week and as investors digested the latest reversal in US tariff policy towards the European Union. The yield on 10-year German Bunds, which serve as a benchmark for the wider euro zone market, was down 1.1 basis point at 2.55% while that on 30-year debt eased 1.7 bps to 3.062%, although the drops lagged the declines seen in long-dated Japanese and US bond yields. With inflation numbers on both sides of the Atlantic due this week, there could be room for another price rally, according to Commerzbank head of rates Christoph Rieger. 'Further bullish hopes are pinned on this week's inflation figures, but the first leads from France today may not fulfil these expectations,' Rieger said. 'In contrast to the pending German and euro zone numbers, our economists expect a small increase in the headline rate, which could be above consensus. With lower German numbers still expected by the end of the week, which could take the headline rate back to 2%, we suggest buying into potential dips at 10y Bund yields around 2.6%,' he said. Yields on the two-year Schatz were fairly flat on the day at 1.794%. Last week, two-year yields touched their lowest in nearly a month, as investors showed a preference for non-US debt, given the unpredictability of US tariff policies and the growing concern over the long-term finances of the US government. Euro zone yields nudge higher, long-dated bonds under pressure Two-year yields are typically more reactive to shifts in expectations for European Central Bank monetary policy, yet much of the focus lately has been on trade uncertainty and government finances. Elsewhere, yields on 10-year Italian, French and Spanish bonds edged lower by around 1-2 bps, reflecting a relative sense of stability to trading on Tuesday.
Mint
27-05-2025
- Business
- Mint
Euro zone yields edge down as tariff-turbulence ebbs
LONDON, May 27 (Reuters) - Euro zone government bond yields dipped on Tuesday, ahead of a raft of regional inflation readings this week and as investors digested the latest reversal in U.S. tariff policy towards the European Union. The yield on 10-year German Bunds, which serve as a benchmark for the wider euro zone market, was down 1.1 basis point at 2.55% while that on 30-year debt eased 1.7 bps to 3.062%, although the drops lagged the declines seen in long-dated Japanese and U.S. bond yields. With inflation numbers on both sides of the Atlantic due this week, there could be room for another price rally, according to Commerzbank head of rates Christoph Rieger. "Further bullish hopes are pinned on this week's inflation figures, but the first leads from France today may not fulfil these expectations," Rieger said. "In contrast to the pending German and euro zone numbers, our economists expect a small increase in the headline rate, which could be above consensus. With lower German numbers still expected by the end of the week, which could take the headline rate back to 2%, we suggest buying into potential dips at 10y Bund yields around 2.6%," he said. Yields on the two-year Schatz were fairly flat on the day at 1.794%. Last week, two-year yields touched their lowest in nearly a month, as investors showed a preference for non-U.S. debt, given the unpredictability of U.S. tariff policies and the growing concern over the long-term finances of the U.S. government. Two-year yields are typically more reactive to shifts in expectations for European Central Bank monetary policy, yet much of the focus lately has been on trade uncertainty and government finances. Elsewhere, yields on 10-year Italian, French and Spanish bonds edged lower by around 1-2 bps, reflecting a relative sense of stability to trading on Tuesday. (Reporting by Amanda Cooper and Dhara Ranasinghe; Editing by Kirsten Donovan)
