LONDON, April 26 Reuters Euro zone bond yields edged higher on Monday, reflecting brighter sentiment in world markets and a growing sense the worst may be behind for a coronavirusbattered economy.

Most 10year bond yields across the currency bloc were up 12 basis points on the day, while U.S. Treasury yields were also a touch higher.

While bond markets have stabilised from a U.S. led selloff earlier this year, improving economic indicators and a pick up in the COVID19 vaccination rollout have started to put some upward pressure on euro area borrowing costs.

The past few weeks have seen an acceleration in European vaccinations, with large European Union countries rolling out shots at a similar pace to Britain. The EU should meet its target of vaccinating 70 of adults by summer, according to NatWest Markets.

Germanys 10year Bund yield was last up 2 basis points on the day at 0.24, not far off sevenweek highs hit last week. Thirtyyear bond yields, at 0.31, were near more than oneyear peaks touched last week.

Andreas Billmeier, European economist Western Asset, said the uptrend in European bond yields should be gradual and fits in with the overall picture of a recovering economy.

If you take out the U.S. rates dynamic, what you have is an economic recovery and that should go hand in hand with higher rates.

Note that the ECB European Central Bank didnt make a peep when yields rose between December and February but only once volatility coming from the U.S. kicked in….