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.