Eurozone bond yields steady with focus on Trump’s executive orders
After four years away the US president-elect has promised rapid changes for immigration, energy and tariffs
20 January 2025 - 15:10
byHarry Robertson
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
London — Eurozone bond yields were little changed on Monday, with investor focus on the inauguration of Donald Trump as US president and the raft of executive orders he has pledged to sign on day one.
Trump will be sworn back in at midday (7pm SA time) in Washington, DC after four years away and has promised a flurry of executive actions concerning immigration, energy and tariffs early in his presidency.
Germany’s 10-year bond yield, the benchmark for the eurozone, was up 1 basis point (bp) to 2.514%, down from a seven-month high of 2.630% last week. Yields move inversely to prices.
US bond and stock markets are closed for Martin Luther King Jr Day.
“(The) market is waiting for the host of executive orders that are likely to be signed in the first day of the Trump presidency,” said Mohit Kumar, European economist at Jefferies.
“Focus would be on policies around tariffs, immigration and deregulation.”
Italy’s 10-year yield was also 1bp higher at 3.655%, and the gap between Italian and German yields stood at 114 bps.
Bond yields around the world rose sharply to multi-month highs in the first two weeks of the year as strong US economic data pushed up US Treasury yields, which tend to drive markets, and investors worried about the potentially inflationary effect of Trump’s tariffs.
They fell back last week after data showed underlying US inflation slowed more than expected in December.
Germany’s two-year bond yield, which is sensitive to European Central Bank rate expectations, was flat at 2.234%.
Investors are also watching the progress of the Israel-Hamas ceasefire which took effect on Sunday. Hamas released three Israeli hostages and Israel released 90 Palestinian prisoners on day one of the truce.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Eurozone bond yields steady with focus on Trump’s executive orders
After four years away the US president-elect has promised rapid changes for immigration, energy and tariffs
London — Eurozone bond yields were little changed on Monday, with investor focus on the inauguration of Donald Trump as US president and the raft of executive orders he has pledged to sign on day one.
Trump will be sworn back in at midday (7pm SA time) in Washington, DC after four years away and has promised a flurry of executive actions concerning immigration, energy and tariffs early in his presidency.
Germany’s 10-year bond yield, the benchmark for the eurozone, was up 1 basis point (bp) to 2.514%, down from a seven-month high of 2.630% last week. Yields move inversely to prices.
US bond and stock markets are closed for Martin Luther King Jr Day.
“(The) market is waiting for the host of executive orders that are likely to be signed in the first day of the Trump presidency,” said Mohit Kumar, European economist at Jefferies.
“Focus would be on policies around tariffs, immigration and deregulation.”
Italy’s 10-year yield was also 1bp higher at 3.655%, and the gap between Italian and German yields stood at 114 bps.
Bond yields around the world rose sharply to multi-month highs in the first two weeks of the year as strong US economic data pushed up US Treasury yields, which tend to drive markets, and investors worried about the potentially inflationary effect of Trump’s tariffs.
They fell back last week after data showed underlying US inflation slowed more than expected in December.
Germany’s two-year bond yield, which is sensitive to European Central Bank rate expectations, was flat at 2.234%.
Investors are also watching the progress of the Israel-Hamas ceasefire which took effect on Sunday. Hamas released three Israeli hostages and Israel released 90 Palestinian prisoners on day one of the truce.
Reuters
Yields hold steady as markets await US data and ECB meeting
ECB warns of ‘bubble’ in AI stocks as funds deplete cash buffers
BoE takes bold step to cut rates from 16-year high
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.