German government bond yields narrowed as a result of comments related to the EU-US trade agreement.

European government bonds narrowed their declines as U.S. President Donald Trump said the possibility of reaching a trade agreement with Europe is at 50%. German bond yields closed up 1-2 basis points; as traders trimmed their bets on the European Central Bank cutting interest rates, the 10-year yield earlier rose 7 basis points to 2.77%. Despite recent optimism from EU diplomats about nearing a trade deal with the U.S., Trump stated that the chances of reaching an agreement are roughly 50-50. Attention is now turning to next week's release of Eurozone growth and inflation data.