LONDON, Oct 14 (Reuters) - Euro zone bond yields fell
slightly on Monday after climbing the previous week, as
investors looked ahead to an expected interest rate cut from the
European Central Bank on Thursday.
Germany's 10-year bond yield, the benchmark for
the euro zone bloc, fell 1 basis point to 2.26%.
France's 10-year yield also fell by around 1 bp,
moving in line with the rest of the market even after ratings
agency Fitch revised France's outlook to "negative" from
"stable" on Friday, citing increases in fiscal policy and
political risks.
U.S. bond markets were closed on Monday and the economic
data calendar was sparse, leaving investors looking towards the
ECB meeting on Thursday, where the central bank is expected to
cut rates by 25 bps to 3.25%.
Italy's 10-year yield was lower by 2 bps at
3.548%, and the gap between Italian and German yields
stood at 128 bps.
Germany's two-year bond yield, which is more
sensitive to ECB rate expectations, was down 3 bps at 2.232%.