LONDON, Aug 20 (Reuters) - Euro zone bond yields inched
lower on Tuesday, maintaining the calm that has washed over bond
markets following volatility earlier this month, with investors
eyeing a meeting of central bankers in Jackson Hole later this
week.
Germany's 10-year bond yield, the benchmark for
the euro zone, was a fraction lower at 2.25%, having been
largely steady for the past few sessions.
This week's annual gathering of central bankers was seen by
investors as the biggest potential risk factor on the horizon.
Federal Reserve chair Jerome Powell is due to deliver
remarks on the economic outlook on Friday, the symposium's first
full day, with other top global policy makers also due to speak.
Italy's 10-year yield was lower by 1.2 basis
points (bps) at 3.62%, and the gap between Italian and German
10-year yields was 136 bps, continuing to narrow
from more than 150 bps in early August.
Germany's two-year bond yield, which is more
sensitive to European Central Bank rate expectations, was 1 bp
lower at 2.44%.