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Euro zone bond yields muted as markets anxiously await Trump tariffs
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Euro zone bond yields muted as markets anxiously await Trump tariffs
Apr 2, 2025 12:07 AM

April 2 (Reuters) - Euro zone bond yields were little

changed on Wednesday as markets anxiously await details of U.S.

President Donald Trump's reciprocal tariffs against global

trading partners due later in the day.

Trump was poised to impose sweeping new reciprocal tariffs

on Wednesday, details of which were still being formulated and

closely held ahead of an announcement ceremony in the Rose

Garden at the White House scheduled for 2000 GMT.

German 10-year bond yield, the benchmark for the

euro zone bloc, was flat at 2.685, having dropped for five

straight sessions, as traders flocked to safe-haven assets in

nervous anticipation ahead of what Trump calls "Liberation Day".

Yields move inversely to prices.

The European Union has a "strong plan" to retaliate against

tariffs imposed, and set to be imposed, by Trump, although it

would prefer to negotiate a solution, EU executive chief Ursula

von der Leyen said on Tuesday.

Italy's 10-year yield was also steady at 3.796%,

and the gap between Italian and German 10-year bond yields

narrowed to 110 bps.

French 10-year bond yields held at 3.404%.

Germany's two-year bond yield, which is more

sensitive to European Central Bank rate expectations, was little

changed at 2.02%.

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