LONDON: Eurozone bond yields fell yesterday after US President Donald Trump threatened China with further tariffs if it fails to sign a trade deal, casting a shadow over the optimism that has hurt bond markets in recent weeks.Trump, on Tuesday, dangled the prospect of completing an initial trade deal with China “soon, ” but offered no new details on negotiations.
He said tariffs would be raised on Chinese goods “very substantially” if China does not make a deal with the United States. “And that’s going to be true for other countries that mistreat us too, ” he added.
Bond yields in the eurozone have risen significantly in recent weeks optimism over a US-China trade deal made safe-haven government bonds less attractive investments.
Germany’s 10-year benchmark yield was up 14 basis points in November. Most 10-year bond yields were down around two basis points early yesterday. — Reuters
Did you find this article insightful?