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German bond yields trade at one-week high, focus on inflation

ReutersFeb 12, 2025 7:56 AM

- German bond yields traded at their highest in over a week on Wednesday after rising by their most in four months in the previous day as markets digested tariff developments, comments from the U.S. Federal Reserve chair, and a rise in energy prices.

The key data focus on Wednesday will be U.S. consumer price index inflation, due at 1330 GMT.

Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone, traded 1 basis point (bp) higher at 2.438% on Wednesday. It earlier touched 2.442%, the highest since Feb. 3.

Fed Chair Jerome Powell said on Tuesday the central bank was in no hurry to cut rates again thanks to a strong economy.

U.S. President Donald Trump's trade advisers were finalising plans on Wednesday for the reciprocal tariffs he has vowed to impose on every country that charges duties on U.S. imports.

Italy's 10-year yield IT10YT=RR was little changed​ at 3.54%, and the gap between Italian and German bond yields DE10IT10=RR narrowed 1 bp to 109 bps.

Germany's two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, was 1 bp higher at 2.09%.

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