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Euro zone bond yields tick higher as focus shifts to U.S. tariff deadline
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Euro zone bond yields tick higher as focus shifts to U.S. tariff deadline
Jul 7, 2025 1:19 AM

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.

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