European government bond yields dipped Tuesday, finding stability after Monday's surge. Investors are scaling back expectations of further European Central Bank rate hikes following President Lagarde's remarks, while the US Federal Reserve is anticipated to continue its tightening path. This divergence has widened the borrowing cost gap between German and US two-year debt significantly.
European government bond yields dipped Tuesday, finding stability after Monday's surge. Investors are scaling back expectations of further European Central Bank rate hikes following President Lagarde's remarks, while the US Federal Reserve is anticipated to continue its tightening path. This divergence has widened the borrowing cost gap between German and US two-year debt significantly.
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