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Euro zone government bond yields were at fresh multi-week highs on Monday, tracking moves in U.S. Treasuries ahead of a data-packed week and in the final run-up to the U.S. elections.
Germany's 10-year bond yield rose 5 basis points (bps) to a more than three-week high of 2.338%.
U.S. 10-year bond yields rose 5 bps to 4.2881%, near late-July highs as investors increasingly bet on a less dovish U.S. Federal Reserve on the back of recent strong economic data.
With just over a week left until the U.S. presidential election, markets are also pricing in a growing likelihood that Republican Donald Trump will return to the White House, along with a Republican majority in the Senate and House of Representatives.
Trump's potential policies, including those on tariffs, are seen as inflationary and have boosted the dollar and fuelled a rise in U.S. Treasury yields.
Germany's two-year bond yield, which is more sensitive to euro zone rate expectations, rose 3 bps to 2.173%.
Meanwhile, a spate of key economic data this week include euro zone third-quarter GDP report, inflation readings and will culminate in the U.S. jobs report on Friday, all of which could shape the rate path on both sides of the Atlantic.
A survey on Friday showing improvement in German business morale in October after four months of decline, offered some respite to Europe's largest economy and sent bond yields higher on Friday.
Italy's 10-year government bond yield rose 4.5 bps to 3.551%, with the gap between Italian and German yields at 120.95 bps.
(Reporting by Medha Singh in Bengaluru; Editing by Toby Chopra)