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Euro area government bond yields rise, playing catch-up with US Treasuries
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Euro area government bond yields rise, playing catch-up with US Treasuries
Apr 2, 2024 12:20 AM

April 2 (Reuters) - Euro zone government bond yields

rose on Tuesday, playing catch-up with U.S. Treasury moves on

Monday when economic data raised doubts about whether the

Federal Reserve could deliver three interest rate cuts this

year.

Euro area markets, which opened after a holiday, await

inflation figures from Germany later in the session and from the

euro area on Wednesday.

Investors priced in around 90 basis points (bps) of European

Central Bank (ECB) rate cuts in 2024, in

line with the levels seen late on Thursday.

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

the bloc, was last up 6 bps at 2.35%.

Italy's 10-year bond yield was up 10 bps at 3.77%

, with the closely watched gap to Germany's 10-year

yield at 139 bps.

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

sensitive to ECB rate expectations, was last 1 bps higher at

2.83%.

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