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Euro zone bond yields steady ahead of economic data this week
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Euro zone bond yields steady ahead of economic data this week
Nov 3, 2024 1:25 PM

Oct 29 (Reuters) - Euro zone government bond yields were

little changed on Tuesday as investors waited for data on

domestic inflation and growth later in the week that could shape

the outlook for European Central Bank policy.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, was last at 2.285%, not far from a

three-month high of 2.352% touched on Monday.

Overall, moves were modest compared with the sell-off that

began late last week in tandem with U.S. Treasuries.

Recent economic data pointing to a deteriorating euro zone

economy and comments from some ECB policymakers highlighting

concerns about inflation undershooting the central bank's 2%

target have fuelled bets of steeper rate cuts.

A survey on Tuesday showed German consumer sentiment is set

to continue to recover heading into November, but economic

expectations for the next 12 months for Europe's largest economy

fell for the third time in a row.

Attention will be on the first reading of third-quarter euro

zone growth on Wednesday, as well as inflation reports out of

Germany, France and the euro zone this week.

Germany's two-year bond yield, which is more

sensitive to ECB rate expectations, was also steady at 2.13%.

U.S. Treasury yields were just below their more than three

month high of 4.30% ahead of data on job openings that could

offer clues about the state of the labour market ahead of the

nationwide employment report on Friday.

There is increased focus on jobs numbers after a strong

September payrolls report boosted bets against more aggressive

U.S. rate cuts.

Investors are ramping up bets on a Donald Trump win in the

U.S. presidential election next week. The Republican candidate's

tariff, tax and immigration policies are seen as inflationary,

which would support the dollar and put bonds under pressure.

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