Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2022 12 02T171223Z 1 LYNXMPEIB10SJ RTROPTP 4 EUROZONE BONDS HEDGEFUNDS - Business Express
FILE PHOTO: A picture illustration of euro banknotes, April 25, 2014. REUTERS/Dado Ruvic/File Photo

Euro zone bond yields rise after U.S. jobs data


By Alun John

LONDON (Reuters) – European government bond yields rose after Friday data showed U.S. employers hired more workers than expected in November and raised wages, complicating the Federal Reserve’s intention to start slowing the pace of its interest rate hikes this month.

Germany’s 10-year bund yield, the benchmark for the euro zone, rose as much as 5 basis points on the day to 1.872%, having earlier traded down as low as 1.76%, its lowest since Sept 19.

The German two-year yield, sensitive to interest rate expectations, rose as much as 8 bps to 2.12%, compared with 1.958% before the data.

Italy’s 10-year bond yield rose as much as 8 bps 3.758%, having earlier dropped as low as 3.647%, its lowest since late August.

The moves followed larger shifts in U.S. Treasury yields following the data, which showed U.S. nonfarm payrolls increased by 263,000 jobs last month, compared to a Reuters estimate of 200,000.

Government bond yields have dropped sharply in recent weeks have driven by hopes the U.S. Federal Reserve will move away from its aggressive pace of interest rate hikes, which earlier in the year badly bruised bond prices and sent yields soaring.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

This rebound had been underscored this week by a dovish speech by Fed chair Jerome Powell on Wednesday – as well as U.S. data on Thursday that raised concerns about slowing economic growth while also indicating a slowdown in inflation.

But Friday’s data undermined this narrative.

“Market attention is on acceleration in wage growth – a key concern for the Fed – and wondering whether this is a reality check after the reassurance they derived from Powell’s words earlier in the week,” Richard McGuire, head of rates strategy at Rabobank, said.

The benchmark U.S. 10 year yield was last up 5 bps at 3.5719%, having briefly touched as high as 3.638%.

The closely watched spread between Italian and German 10-year yields was 190 basis points.

 

(Reporting by Alun John; Editing by Mark Potter, Toby Chopra and Andrew Heavens)

Recent Post: