Eurozone government bond yields are rising, while investors are focusing on potential actions by Central banks to reduce stimulus measures, and are also waiting for news from Italy.
The current prime minister of Italy, Mario Draghi, will leave his post next month to then participate in the presidential elections. The new prime minister will be chosen by the Parliaments in January.
The yield on 10-year German government bonds rose by 2.4 basis points to -0.227% (the maximum since November 25).
Experts believe that borrowing costs are likely to rise as governments succeed in fighting the pandemic, while central banks will be forced to raise rates to reduce inflation.
Analysts note that Italian risk premium may grow amid increased confidence in the economy. Meanwhile, Germany's less strict approach to fiscal policy may support peripheral bond prices next year.
The yield on 10-year Italian government bonds rose by 4.8 basis points to 1.175% (the maximum since January 1), while the yield on 10-year French government bonds increased by 3.0 basis points to 0.149%.