Euro zone yields dip as trade worries resurface; U.S. jobs data in focus
Euro zone government bond yields dipped as a trade dispute between the U.S. and China flared up again.
They may fall further if U.S. jobs data due later fall short of expectations.
Government bonds in major developed economies, considered a safe investment in uncertain times, have seesawed this week as U.S. President Donald Trump wrangles with Beijing over tariffs, raising prospects of a full-blown trade war between the world’s two largest economies.
An apparent easing in tensions earlier in the week pushed euro zone yields higher as investors shed safe-haven assets. That move reversed on Friday after Trump directed U.S. trade officials to identify options for tariffs on $100 billion more of Chinese imports.
European Central Bank board member Benoit Coeure said that fears of a trade war are already raising borrowing costs and pushing down share prices, and have “contributed to tighter financial conditions”.Published: by Radio NewsHub