LONDON, March 28 (Reuters) - Euro zone bond yields fell
to their lowest in three weeks on Friday as investors braced for
U.S. President Donald Trump to announce reciprocal tariffs on
April 2.
Trump on Wednesday unveiled a 25% tariff on imported cars
and light trucks starting next week, which has also dented
investor sentiment, and has long promised to announce more
tariffs that match the trade levies other countries charge on
Wednesday next week.
Germany's 10-year bond yield, the benchmark for
the euro zone, was down 5 basis points to 2.723%, the lowest
since March 5. Yields move inversely to prices.
Italy's 10-year yield was 4 bps lower at 3.841%,
and the gap between Italian and German yields
stood at 110 bps.
Germany's two-year bond yield, which is sensitive
to European Central Bank rate expectations, was 2 bps lower at
2.039%.