Europe opens lower amid spike in bond yields

Friday, 26. February 2021 09:02

European markets opened with losses on Friday following a rapid rise in bond yields that triggered fears of higher interest rates soon. The concerns led to a selloff in shares on Wall Street and across the Asia-Pacific region.

Earlier this week, Federal Reserve Chairman Jerome Powell assured markets the central bank would keep rates near zero as unemployment is still far off from the Fed's goals. However, investors shrugged off Powell's comments as the 10-year US Treasury yield rose to its highest in over a year.

The DAX tanked 1.39% in the first minute of trading as Basf led the losses. In Paris, the CAC 40 was down 1.38% with ArcelorMittal sinking over 4%. The FTSE 100 fell 1.18% at 9:02 am CET; Rolls Royce was the weakest performer, dropping 3.44%.

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Breaking the News / JC