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January 02, 2026

Euro zone bond yields edge up on first trading day of new year

Euro zone government bond yields rose on Friday, with investors looking ‍ahead to a year that will be ​marked again by hefty new debt sales, the impact of German ⁠fiscal stimulus and geopolitical headwinds.Benchmark 10-year bond yields edged up in early Friday trade, following Wednesday's rise in U.S. Treasury yields. European bond markets were closed on Thursday.Germany's 10-year Bund yield rose 2.5 basis points (bps) to 2.89%. ‌It ended 2025 ‌roughly 50 bps higher, the biggest annual increase since the 2022 global inflation surge.While French yields also rose, Italian yields ended ‌little changed and UK gilt yields, a source of volatility in the past year, fell.Commerzbank expects upward pressure on borrowing costs from new bonds sales will remain in place.It calculates that

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