Dec 19 (Reuters) - Euro zone bond yields jumped on
Thursday, a day after the U.S. Federal Reserve cut interest
rates as expected but signalled it would slow the pace of easing
in 2025.
Germany's 10-year bond yield, the benchmark for
the euro zone bloc, rose 6 basis points (bps) to 2.297%,
touching its highest level since Nov. 22. Yields move inversely
to prices.
Italy's 10-year yield was up 9 bps to 3.489%,
and the gap between Italian and German bond yields
widened 5 basis points to 118 bps.
The U.S. central bank cut interest rates by 25 bps as
expected on Wednesday, but Fed Chair Jerome Powell said more
reductions in borrowing costs now hinge on further progress in
lowering inflation.