The yields on government bonds in the Euro zone increased on Monday as the United States withdrew its threat to impose 50% tariffs on European imports, which eased concerns over a potential sharp economic downturn.
On Sunday, U.S. President Donald Trump agreed to extend the deadline for talks between Washington and the 27-nation bloc until July 9, with the goal of reaching a deal.
The 10-year yield in Germany (DE10YT=RR) increased by 3 basis points (bps) to 2.60%, following a drop of 6.5 bps on Friday.
The 2-year government bond yields in Germany , which are more sensitive to European Central Bank policy rates, rose by 4 bps to 1.80%, after they fell 7 bps on Friday.
Meanwhile, Italy’s 10-year yield (IT10Y) increased slightly by 1 bp to 3.82%, following the decision by Moody’s credit rating agency on Friday to upgrade Italy’s outlook to "positive".
