Euro zone yields rise as markets weigh Trump's tariff plans

Reuters02-04
Euro zone yields rise as markets weigh Trump's tariff plans

Feb 4 (Reuters) - Euro zone bond yields rose on Tuesday, while investors weighed the impact of U.S. President Donald Trump's tariffs as levies on China came into effect.

Minutes after the U.S. tariffs took effect, China announced it was slapping tariffs on some U.S. imports. Trump on Monday paused levies on Mexico and Canada at the last minute.

Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, rose 3 basis points (bps) to 2.42%, after falling 7 bps on Monday.

Yields move inversely to prices.

Italy's 10-year yield IT10YT=RR was higher by 2.5 bps at 3.527%, and the gap between Italian and German yields DE10IT10=RR stood at 110 bps.

Germany's two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, was up 2 bps at 2.057%.

(Reporting by Greta Rosen Fondahn; Editing by Kim Coghill)

((Greta.RosenFondahn@thomsonreuters.com))

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