22-07-2025
- Business
- Wall Street Journal
Eurozone Bond Yields Edge Up, Reversing Monday's Falls
0638 GMT – Eurozone 10-year government bond yields rise in early trade, reversing Monday's significant falls which had no obvious macro catalyst, says Danske Bank's Frederik Romedahl in a note. 'Low volumes, light issuance this week and ongoing trade uncertainty might have been the factors driving the steady decline during the day,' the chief analyst says. Yields on Italian and French government bonds fell the most on Monday, dropping by 10.5 and 10.6 basis points, respectively, according to Tradeweb data. The 10-year German Bund yield is last up 1.2 basis points at 2.626%; the 10-year French OAT yield rises 1.9 basis points to 3.310%; and the 10-year Italian BTP yield is up 1.6 basis points at 3.494%. (
0616 GMT – The U.S. Treasury yield curve has steepened recently, but it still isn't steep by historical standards, say LPL Financial's LPLA -3.49%decrease; red down pointing triangle Lawrence Gillum and Adam Turnquist in a note. Historically, the difference between the two- and 10-year Treasury yields is close to 100 basis points, albeit with a lot of variability, the strategists say. 'The 2-year/10-year spread is only at +0.55%, so we think the curve could further steepen throughout the year,' they say. Given this spread but with five times the interest rate risk, 'it doesn't make a lot of sense, in our view, to extend duration within portfolios.' The two-year Treasury yield last is up 1 basis point at 3.861%; the 10-year yield rises 1.3 basis points to 4.381%, according to Tradeweb. (
