LONDON, March 10 Europe's benchmark government
bond yield was set for its biggest two-week rise since June 2015
on Friday as ECB signals of diminishing urgency for policy
action mixed with expectations for an imminent rate hike in the
Germany's 10-year bond yield climbed as much as 4 basis
points on Friday to a five-week high of 0.46 percent
, meaning it has now risen more than 25 bps over
the past two weeks.
The gap between two- and 10-year yields topped
130 basis points, its widest since June 2014. This so-called
steepening of the yield curve indicates investor expectations
for future inflation are rising.
Yields across the euro zone rose have risen broadly since
the European Central Bank removed one phrase from his standard
introductory statement to Thursday's meeting that pledged it
would act "using all the instruments available" to achieve its
objectives, highlighting an improvement in the economic outlook.
ECB President Mario Draghi said the change signaled "that
there is no longer that sense of urgency in taking further
Amid the broad bond market rout, Italian 10-year yields were
set for their biggest weekly rise in four months.
The rise in yields also comes ahead of closely-watched U.S.
employment data later on Friday, which some expect to show job
growth in February was far more than economists forecast
following bumper private sector data earlier this week.
A strong report would further cement expectations that the
U.S. Federal Reserve will raise interest rates at least three
times this year, starting next week.
(Reporting by John Geddie; Editing by Jamie McGeever)