Euro zone bond yields jumped on Thursday, a day after the US Federal Reserve cut interest rates as expected but signalled it would slow the pace of easing in 2025.
Germany’s 10-year bond yield, the benchmark for the euro zone bloc, rose 6 basis points (bps) to 2.297%, touching its highest level since Nov. 22.
Yields move inversely to prices.
Euro zone bond yields broadly steady, eyes on Fed
Italy’s 10-year yield was up 9 bps to 3.489%, and the gap between Italian and German bond yields widened 5 basis points to 118 bps.
The US central bank cut interest rates by 25 bps as expected on Wednesday, but Fed Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering inflation.
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