Widening Gap Between Treasury-European Bond Yields Hits Euro
Dow Jones
Yesterday
1233 GMT - The widening gap between yields in Treasurys and European government bonds is weighing on the euro versus the dollar despite resilient eurozone economic indicators, XS.com's Simon-Peter Massabni says in a note. "The divergence between strong eurozone fundamentals and a weak single currency highlight how yield differentials currently dominate price action," he says. Sticky energy prices are keep Treasury yields stubbornly high, reinforcing the dollar's yield advantage relative to European assets, he says. The euro rises 0.1% to $1.1248, having reached a 16-month low of $1.1214 Thursday, LSEG data show. The spread between the 10-year Treasury-German yield reaches the widest since June 2025 on Friday.
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