Euro Zone Bond Yields Dip Amid Global Financial Shifts

Euro zone government bond yields dipped on Thursday, influenced by external factors primarily stemming from the U.S. and UK. Investors are keenly focused on the U.S. jobs data set to be released later, while the bond market exhibits fluctuations following a sharp selloff in British gilts.

Germany's 10-year bond yield, a benchmark within the euro zone, was observed to decrease by 4 basis points to 2.58%. The movement is seen as a turnaround from Wednesday's spike, which was driven by concerns regarding the UK's public finances and uncertainty surrounding finance minister Rachel Reeves.

Anticipation grows around U.S. non-farm payrolls—a key market event scheduled for 1230 GMT—expected to show a slowed labour market and unemployment edging higher. Such data is critical for gauging potential Federal Reserve rate cuts, with at least two 25 basis point cuts forecasted this year.

(With inputs from agencies.)