Euro zone bond yields fall as April 2 tariff date looms

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Euro zone bond yields fall as April 2 tariff date looms

, Reuters - 3:44 AM ET 3/28/2025 default

LONDON, March 28 (Reuters) - Euro zone bond yields fell to their lowest in three weeks on Friday as investors braced for U.S. President Donald Trump to announce reciprocal tariffs on April 2.

Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks starting next week, which has also dented investor sentiment, and has long promised to announce more tariffs that match the trade levies other countries charge on Wednesday next week.

Germany's 10-year bond yield, the benchmark for the euro zone, was down 5 basis points to 2.723%, the lowest since March 5. Yields move inversely to prices.

Italy's 10-year yield was 4 bps lower at 3.841%, and the gap between Italian and German yields stood at 110 bps.

Germany's two-year bond yield, which is sensitive to European Central Bank rate expectations, was 2 bps lower at 2.039%.

(Reporting by Harry Robertson Editing by Mark Potter)

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