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Euro zone bond yields steady as Trump tariff deadline arrives
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Euro zone bond yields steady as Trump tariff deadline arrives
Jul 9, 2025 12:28 AM

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.

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