LONDON, July 9 (Reuters) - Euro zone government bond
yields were little changed on Wednesday as investors took U.S.
President Donald Trump's plans for additional import levies in
their stride, on the day when his original 90-day tariff pause
was due to expire.
Trump broadened his trade war late on Tuesday, threatening a
50% tariff on imported copper and levies on the pharmaceutical
and semiconductor industries, one day after announcing larger
tariffs on 14 trade partners, including Japan and South Korea.
Trump added that a minimum of seven letters to countries
outlining higher tariffs would be released on Wednesday morning
and more in the afternoon.
Bond market investors in Europe were waiting for an update
on Washington's trade talks with the European Union. Some EU
sources told Reuters on Monday that the bloc was close to an
agreement with the Trump administration.
Germany's 10-year bond yield, the euro zone's
benchmark, was down less than 1 basis point at 2.634%. It hit
its highest since May 16 on Tuesday at 2.668%. The 30-year yield
was down 1.5 bps at 3.152%.
"In absence of a more tangible trigger, 10y and 30y Bund
yields are unlikely to establish ranges above the May highs,"
said Commerzbank rates strategist Hauke Siemssen.
Germany's policy-sensitive 2-year yield was
little changed at 1.863%.
Italy's 10-year yield, the benchmark for the
euro zone's periphery, was down 1 bp at 3.552%, keeping the
spread between Italian and German 10-year yields
steady at about 91 bps.