Euro zone bond yields steady, market unfazed by moves elsewhere

BY Reuters | ECONOMIC | 11/25/25 04:10 AM EST

LONDON, Nov 25 (Reuters) - Euro zone bond yields held steady in early trading on Tuesday even as other asset classes and U.S. Treasuries clung to gains as hopes grow the Federal Reserve will deliver a December rate cut.

Germany's 10-year Bund yield was flat at 2.7%, broadly in the middle of its range for much of this year.

With the European Central Bank firmly on hold, European rates have been fairly muted in recent weeks. Spillovers from moves in stocks or U.S. and Japanese government bonds have not been sufficient to drive significant shifts either.

French and Italian 10-year yields were largely moving in line with Germany's, the euro zone benchmark, on Tuesday.

France's 10-year yield was flat at 3.45% and Italy's was unchanged at the same level.

U.S. yields have been dropping in recent days as bets on a Federal Reserve rate cut rise, though were steadier on Tuesday with the 10-year Treasury yield at 4.04%.

Meanwhile, super-long-dated Japanese government bond yields are at their highest levels on record.

(Reporting by Alun John; Editing by Emelia Sithole-Matarise)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article