Euro zone yields steady at multi-month lows as investors await inflation data

Euro zone government bond yields steadied near multi-month lows after Nvidia's results beat expectations, supporting risk appetite, with investors now awaiting inflation data from Germany, France and Spain on Friday. Stocks bounced ‌in ⁠Asia and ⁠were about to open broadly unchanged in Europe, but concerns over AI-driven disruption and rising costs remained.

Germany's 10-year government bond yield, the euro area's benchmark, was flat at 2.71%. It ​reached 2.697% on Tuesday, ⁠its lowest ‌level since November 28 ​and was ​around 2.90% early this month. U.S. ⁠Treasury yields rose on Thursday, with benchmark ​10-year up 1.5 basis points (bps) at ​4.32% in early London trade, after edging lower the day before, as risk appetite perked up.

Germany's 2-year yields, more sensitive to expectations for policy rates, were ‌down one bp at 2.05%.


Money markets kept pricing in an ​around ​30% chance ⁠of a European Central Bank rate cut by December.

Italy's 10-year government bond yields fell 0.5 bps ​to 3.32%. The gap versus Bunds was at 59.50 bps, after falling to 53.50 bps in mid-January, its lowest level since August 2008.