Long-dated euro zone yields set for biggest monthly jump since March
LONDON, Aug 29 (Reuters) - Euro zone 30-year bond yields were set for their biggest monthly jumps on Friday as long-dated debt remains under pressure across developed economies.
Long-dated bonds have repeatedly taken a hit this year as investors remain concerned about the sustainability of high government debt levels.
Germany's 30-year yield DE30YT=RR, which touched its highest since 2011 earlier in August, has risen 12 basis points this month, setting it for its biggest monthly jump since March, when a historic move towards looser fiscal policy sent bond yields surging. Bond yields move inversely with prices.
The biggest jump came in France, where they rose 25 bps, also the biggest monthly jump since March.
French bonds, which were shaken this week by Prime Minister Francois Bayrou's move to call a confidence vote on September 8 that he may lose, remained calm on Friday. The closely-watched spread France pays over Germany for 10-year debt held at 78 bps. DE10FR10=RR.
Bond yields across the euro zone were also steady on Friday DE10YT=RR, DE2YT=RR, IT10YT=RR as investors awaited the release of the U.S. PCE price index data, the Federal Reserve's favoured inflation gauge, which could set the tone for U.S. Federal Reserve rate cut expectations.
Related Articles
U.S. July PCE and Q2 GDP Commentary: Core Inflation Remains the Key Focus for the U.S. Stock Market Outlook
TradingKey - On 28–29 August 2025, the U.S. released inflation and growth data. The July headline PCE rose by 0.2% month-over-month and 2.6% year-over-year, while core PCE increased by 0.3% month-over-month and 2.9% year-over-year, both aligning with market expectations. On the growth front, the...
Who Smokes Whom? Altria and Philip Morris International for Tobacco Supremacy
TradingKey - As a U.S. tobacco giant, Altria dominates the cigarette market through subsidiaries like Philip Morris USA but faces severe challenges from declining sales and competition from illicit e-cigarettes..jpg)
Bitcoin Tumbles Nearly 5% in August — Can September Turn the Tide?
Ancient whale wallets dumped Bitcoin throughout August, sending its price on a roller-coaster ride. With September’s Federal Reserve meeting on the horizon, traders are asking: can Fed action spark a BTC rebound?
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Why a 50-Basis-Point Rate Cut in September Should Worry Investors? Risks and Fed Independence Loom Large
TradingKey - After the release of the July nonfarm payrolls and CPI reports, markets have all but locked in expectations for the Federal Reserve to restart rate cuts in September, but the magnitude of the cut remains uncertain. U.S. Treasury Secretary Scott Bessent has called for a 50-basis-point
