LONDON: Euro zone government bond yields rose to their highest levels in two weeks on Thursday as investors waited for inflation data from the United States and some of the bloc’s countries on Friday.
Germany’s 10-year bond yield, the benchmark for the euro zone, rose to 2.471% in early trading, the highest since June 14. It last stood 1 basis point (bp) higher at 2.463%.
Stronger-than-expected inflation prints from Australia and Canada this week have reminded markets that the battle against price rises is ongoing.
France’s 10-year bond yield rose to 3.24% in early trading, the highest since June 12.
Italy’s 10-year yield climbed to 4.02%, also the highest since June 12.
Euro zone government bond yields edge down before Ifo data
The risk premium investors demand to hold French debt remained within striking distance of a seven-year high, hit almost two weeks ago as markets worried about the risk of far-right or far-left parties winning upcoming parliamentary elections.
The so-called spread between French and German 10-year yields was at 77 bps, near the more than 80 bp level hit on June 14.
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