Euro zone yields steady ahead of euro area PMIs, US data

Euro zone bond yields were steady on Tuesday as traders awaited the currency bloc's composite PMIs and a closely watched U.S. jobs report for a potential steer on the Federal Reserve's policy outlook.

A European Central Bank policy meeting is due later in the week, with the Bank of England and Bank of Japan also set to deliver rate decisions.

Germany's 10-year yield, the euro area benchmark, was virtually unchanged at 2.8475%. Last week it touched 2.894%, its highest level since mid-March.


The yield on the German 2-year Schatz DE2YT=RR was also flat at 2.15%.

The ECB meets on Thursday, with traders betting overwhelmingly that the central bank will keep rates steady at 2%.

Euro area composite PMIs on Tuesday will give market watchers a view into how the economy is faring after data on Monday showed industrial output growth accelerated in October.

In a note on Tuesday, RBC economists said they expect a modest improvement in the euro area composite PMI in December to 53.2 from 52.8 in November, calling it "a very solid starting point going into 2026."