Bund yields near multi-month lows as investors weigh US tariff ruling

By Stefano Rebaudo

Feb 23 (Reuters) - Euro area benchmark Bund yields hovered near multi‑month lows on Monday as investors awaited economic data this week and considered the impact of the U.S. Supreme Court’s decision to strike down President Donald Trump’s tariffs.

Analysts recalled that many tariffs originate from bilateral agreements and are therefore not directly influenced by the Supreme Court ruling, but uncertainty over the U.S. administration’s future actions remains.

U.S. Trade Representative Jamieson Greer said on Sunday that none of the countries that had reached trade deals with the U.S. had indicated plans to withdraw.

In any case, replacement measures flagged so far could cushion the impact on U.S. budget revenues.

President Donald Trump said on Saturday that he will raise a temporary tariff from 10% to 15% on U.S. imports from all countries.

Germany’s 10-year government bond yield DE10YT=RR, the euro area’s benchmark, dropped 0.5 basis points (bps) to 2.73%. It reached 2.725% on Tuesday, its lowest since December 1 and was around 2.9% early this month.

U.S. Treasury yields fell on Monday, with benchmark 10-year US10YT=RR paper down one basis point at 4.07% in early London trade after edging up last Friday.

Investors are awaiting U.S. producer prices data on Thursday and inflation figures from Germany, France and Spain on Friday.

Germany’s two-year yields DE2YT=RR, more sensitive to expectations for policy rates, fell 1.5 bps to 2.05%.

Italy’s 10-year government bond yields IT10YT=RR were flat at 3.35%. The gap versus Bunds was at 59 bps after falling to 53.50 in mid-January, its lowest since August 2008.