LONDON, Dec 20 (Reuters) - Euro zone government bond yields sold off sharply on Wednesday as trading hours began in the United States, with one trader citing a clearing out of positions before year end as the main cause for the move.
Italian debt led the losses, with the yield on Italy’s 10-year government bond rising 6 basis points to a two-month high of 1.95 percent.
Most other euro zone bond yields were up 3-5 bps. The yield on Germany’s 10-year Bund, the benchmark for the bloc, was up 3 bps to a one-month high of 0.41 pct.
U.S. 10-year Treasury yields rose to a nine-month high of 2.48 percent, extending a rise seen on Tuesday as the biggest overhaul of the U.S. tax code in more than 30 years appeared on track to become law by the end of the week. (Reporting by Abhinav Ramnarayan, Editing by Dhara Ranasinghe)