Euro Zone Bonds Steady Ahead of Key Data Releases
Euro zone bond yields dipped as markets awaited key data from Europe and the US. Spanish yields fell after rating upgrades. Despite a rate cut by the US Fed, yields have risen globally. Investors are cautious due to a potential US government shutdown which could impact data releases, particularly payrolls.
Euro zone government bond yields declined on Monday, anticipating crucial data releases from both Europe and the United States this week. Spanish yields also dropped following the country's receipt of two sovereign ratings upgrades on Friday. Market activity remained subdued as investors braced for a possible U.S. government shutdown, which may disrupt the release of key monthly jobs data this Friday.
Germany's 10-year bond yield, considered the euro zone benchmark, decreased by 2.5 basis points to 2.721% after reaching a 2-1/2 week high of 2.779% last Friday. Despite a recent rate cut by the U.S. Federal Reserve, global yields have been climbing over the past two weeks, driven by cautious central bank sentiments and resilient economic data.
The Spanish 10-year bond yield dipped by 3 basis points to 3.282%, aligning broadly with the German benchmark following ratings upgrades by Moody's and Fitch, reflecting Spain's improving economy and labor market. Analysts anticipate continued strong performance from Spanish bonds, while the markets await euro zone inflation data and U.S. labor reports for insights on future interest rate directions.
(With inputs from agencies.)
Google News