Euro-Area Bond Investors Await Growth Data After U.S. Jobs Jolt
- Region's government bonds tumble after jump in U.S. hiring
- German 10-year bund yield climbs to highest in seven weeks
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With some European Central Bank officials already expressing skepticism about the need of additional stimulus, bond investors get an opportunity to assess the state of the euro-area economy next week.
Benchmark German 10-year bund yields jumped the most since August this week after a U.S. jobs report Friday showed employment surged the most this year in October, strengthening the case for a Federal Reserve interest-rate increase as early as next month. Euro-area bonds reversed a rally that was driven by ECB President Mario Draghi’s statement on Oct. 22 that officials will reexamine their stimulus in December and had discussed cutting the deposit rate, which is already at minus 0.20 percent, as part of their plan to boost inflation.