LONDON, Dec 4 (Reuters) - Euro zone bond yields rose sharply and European stock futures pointed to a higher open on Monday as the passage of a tax bill in the United States over the weekend increased the prospects of more aggressive rate hikes in the world’s largest economy.
The U.S. Senate narrowly approved a tax overhaul on Saturday, moving Republicans and President Donald Trump a big step closer to their goal of slashing taxes for businesses and the rich while offering everyday Americans a mixed bag of changes.
The yield on 10-year U.S. Treasuries was 4 basis points higher on Monday at 2.41 percent.
German bund futures opened more than 50 ticks lower at 163.2 and euro zone bond yields jumped 3-5 basis points across the board, bouncing off lows hit on Friday on the back of increased political risk in the U.S.
The tax bill boosted leading euro zone stock index futures up 1 to 1.3 percent, with Germany’s DAX futures the best-performing. Britain’s FTSE futures gained 0.8 percent in early deals. (Reporting by Abhinav Ramnarayan and Helen Reid; Editing by Saikat Chatterjee)