Eurozone bond yields drop as Trump’s tariffs take effect

Published 04/03/2025, 09:48
Eurozone bond yields drop as Trump’s tariffs take effect

Investing.com -- Eurozone government bond yields have experienced a decline, a shift from the rise seen on Monday, which was stimulated by the February inflation data exceeding predictions.

This change in direction coincides with the enforcement of U.S. President Trump’s tariffs on Mexico and Canada.

Analysts at RBC Capital Markets noted the commencement of the trade war, stating that Trump declared no room for negotiation with Mexico and Canada, and the tariffs have now come into effect.

In addition to this, an extra 10% tariff on China was imposed by Trump, supplementing the 10% tariffs that were enforced in early February.

The bond supply in the eurozone is expected to be substantial, with contributions coming from Austria, Germany, Belgium, and the Netherlands.

The 10-year German Bund yield has fallen by over 3 basis points and was last traded at 2.434%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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