Eurozone bond yields rise with US bond yields, hopes for year-end Rebound affected by Fed's "hawkish rate cut"

GoldenOctober2024

On December 19th, Jinshi data, in the early European trading session, the yield on Eurozone government bonds rose following the rise in US Treasury yields. Investors had previously dumped US Treasuries because the Federal Reserve cut interest rates by 25 basis points on Wednesday as expected, but signaled a slowdown in future easing steps. According to a report by the Interest Rate strategist at Deutsche Bank’s research department, Powell’s hawkish rate cut measures have poured cold water on any hope for a year-end rebound. The yield on Germany’s 10-year government bond rose by about 2.5 basis points to 2.249%, while the yields on other bonds increased even more significantly. According to Tradeweb’s data, the yield on Spain’s 10-year government bond rose by 7 basis points to 3.011%; the yield on Italy’s 10-year government bond rose by 9 basis points to 3.493%; and the yield on France’s 10-year government bond rose by nearly 3 basis points to 3.055%.

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