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Eurozone Government Bond Yields Drop, Still Close to Records

European government debt yields skidded on Friday yet remained close to their ongoing peaks as fears of contention in the Middle East scattered and traders re-concentrated on Phase 1 economic agreement between Washington and Beijing.

ecbPhoto: Flickr

The arrangement is relied upon to be marked one week from now and U.S. President Donald Trump has said arrangements for the second period of talks would begin promptly a short time later, albeit most experts trust China would prefer to hold up until the U.S. presidential election in November.

Hunger for risk lessens interest for safe resources, for example, government bonds, pushing their value lower and yields higher.

The benchmark German Bund yield lost 1.2 bps at minus 0.233 percent, near the one-week top of minus 0.213 percent arrived at the day preceding.

Most other 10-year bond yields in the eurozone were tumbling by around 1 basis point also. Italy was the exception, with its 10-year bond yield down 3.1 basis points at 1.347 percent, a four-day low.

The U.S. non-farm payrolls report is expected later on Friday, and financial analysts surveyed by Reuters anticipate that the number should tumble to 164,000 in December from 266,000 in November. That is still generally solid since November's ascent was uncommon.

Fed authorities have been flagging that U.S. borrowing costs are probably going to remain at current levels. Minneapolis Fed President Neel Kashkari, for instance, said on Thursday that last year's rate slices decreased recession dangers, and he anticipated no adjustment in rates for a long time to come.

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