LONDON, July 7 (Reuters) - Euro zone long-dated bond
yields rose slightly on Monday as markets focused on
developments around U.S. tariffs, with officials flagging a
delay to a July 9 deadline, while specifics on the changes
remained murky.
Germany's benchmark 10-year Bund yields increased 2
bps to 2.584%. Meanwhile, 10-year Treasuries held steady at
4.3379%.
President Donald Trump said on Sunday the United States is
close to finalising several trade agreements in the coming days
and will notify other countries of higher tariff rates by July
9, with the higher rates to take effect on August 1.
Markets are braced for heightened volatility this week as
more concrete details on Trump's plans for import tariffs with
the United States' major trading partners become clear.
German two-year yields, typically more sensitive to
shifts in interest rate expectations, were up by half a basis
point to 1.82% but remained close to a three-week low.
Italian 10-year yields rose 2.3 bps to 3.493%,
with their premium over German Bunds at 90 bps,
according to LSEG data.
Meanwhile, Britain's 10-year gilt yield was
unchanged at 4.56%, though yields remain elevated following a
sharp sell-off in UK government bonds last Wednesday, which was
spurred by a U-turn on planned government cuts to welfare
spending.
Elsewhere, German industrial production rose more than
expected in May thanks to the automotive industry and energy
production, the federal statistics office said on Monday.
ECB policymakers Joachim Nagel and Robert Holzmann will both
speak on Monday.