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Euro Zone Bond Yields Surge After Fed Move

Euro Zone Bond Yields Surge After Fed Move In a swift market reaction, euro zone bond yields surged on Thursday, a day after the U.S. Federal Reserve cut interest rates. This move by the Fed was as anticipated, yet it signaled a deceleration in easing measures moving into 2025.Germany's 10-year bond yield, which serves as a benchmark for the euro zone, increased by 6 basis points to 2.297%, marking its peak since November 22. The Italian 10-year yield also experienced an uptick, climbing 9 basis points to 3.489%. Meanwhile, the spread between Italian and German yields expanded by 5 basis points, reaching 118 basis points.The Fed's decision to cut rates by 25 basis points was expected, yet Fed Chair Jerome Powell indicated that any future declines in borrowing costs are contingent on tangible progress in curbing inflation.

In a swift market reaction, euro zone bond yields surged on Thursday, a day after the U.S. Federal Reserve cut interest rates.

This move by the Fed was as anticipated, yet it signaled a deceleration in easing measures moving into 2025. Germany's 10-year bond yield, which serves as a benchmark for the euro zone, increased by 6 basis points to 2.297%, marking its peak since November 22.

The Italian 10-year yield also experienced an uptick, climbing 9 basis points to 3.489%. Meanwhile, the spread between Italian and German yields expanded by 5 basis points, reaching 118 basis points.

The Fed's decision to cut rates by 25 basis points was expected, yet Fed Chair Jerome Powell indicated that any future declines in borrowing costs are contingent on tangible progress in curbing inflation. (With inputs from agencies.).