The income of government bonds of the eurozone was established on Wednesday, when investors welcome the plans of US President Donald Trump to establish additional customs duties for imports, on the day when the initial customs duties were planned, which lasted 90 days.
Trump expanded his commercial war on Tuesday evening, threatening to impose customs duties by 50 percent on copper imports, in addition to drawings on the pharmaceutical industry and semiconductors, just one day after the announcement of higher fees for imports of 14 commercial partners, including Japan and South Korea, according to Reuters.
Trump announced that at least seven notifications will be issued on Wednesday morning, including high customs definitions, which follow more notifications at the end of the day.
And investors of the bond market in Europe are waiting for the development of commercial negotiations between Washington and the European Union, where on Monday European sources informed Reuters that the European Union was going to reach an agreement with the American administration.
The German bond returns for 10 years, the standard index of the euro zone recorded a small decrease at less than one base point to 2.634 percent, after reaching the highest level from May 16 by 2.668 percent on Tuesday. The profitability of the bond also decreased within 30 years by 1.5 basic points to 3.152 percent.
“In the absence of clear incentives, it is not expected that the yield of German bonds will grow for 10 years and 30 years at the level of May,” said Haw Simsen, strategic percentage expert at Kumretz Bank.
The return of German bonds for two years, which is most sensitive to monetary policy, remained stable at 1.863 percent.
The Italian bond returns for 10 years, the reference standard for the Eurozone countries, has decreased by one basis, to 3.552 percent, maintaining the difference in return between Italian and German bonds for the same period at about 91 basic points.
