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Euro zone bond yields jump after Fed decision
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Euro zone bond yields jump after Fed decision
Dec 19, 2024 12:21 AM

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.

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