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Euro zone yields fall as tariff threats spur safe-haven demand
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Euro zone yields fall as tariff threats spur safe-haven demand
Mar 11, 2026 12:56 AM

Jan 19 (Reuters) - Euro zone government bond yields

edged lower on Monday as some investors moved into safe-haven

assets after U.S. President Donald Trump threatened to slap

extra ‌tariffs on eight European nations until the U.S. was

allowed to ​buy Greenland.

European Union ambassadors reached broad agreement ‍on Sunday

to intensify efforts to dissuade ⁠Trump from ⁠imposing the

tariffs, while also preparing retaliatory measures should the

duties go ‌ahead.

Germany's 10-year yields were ​down 2 basis

points (bps) at 2.82%. They rose 1.3 bps last week.

The yield on ⁠the benchmark U.S. 10-year ‍Treasury ​note

rose 7 bps to 4.233% on Friday, its highest since

September 3, as investors assessed mixed ‍economic data and

unprecedented pressure on the Federal Reserve from the White

House to lower interest rates.

The U.S. market will be closed on Monday for Martin Luther

King Jr. Day.

German 2-year yields, ​more ‍sensitive to

expectations for monetary policy rates, fell 4 bps to 2.08%.

Italy's 10-year government bond ​yields dropped

0.5 bps to 3.43%, with the gap versus German Bunds widening to

58.50 bps, after hitting 53.50 bps late Friday, its narrowest

level since August 2008.

Spain's spread versus Bund yields was at 38.50 bps after

dropping to ​36.9 bps on Friday, the narrowest since summer

2008. Portugal's and Greece's spreads were also widening from

their narrowest in almost ‍two decades.

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