Euro Zone Bond Yields Steady Amid U.S. Shutdown Uncertainty
Euro zone government bond yields remained steady as private sector data indicated a weakening labor market in the U.S. The government shutdown in Washington adds uncertainty, affecting the release of key employment data. French yields reached high levels, while France and Spain plan to hold significant debt auctions.
The bond market in the euro zone held its ground on Thursday, reflecting stable yields in the face of a weakened U.S. labor market as indicated by private sector data. A U.S. government shutdown has further obscured the economic outlook, delaying crucial employment statistics.
The non-release of the monthly U.S. jobs report, originally slated for Friday, leaves investors, economists, and politicians without a clear picture of the labor market's health. German 10-year Bunds, the euro zone's benchmark, remained nearly unchanged, signaling a two-week decline, the first since mid-June, despite intraday fluctuations.
Commerzbank's Christoph Rieger advises investors to buy into Bunds, as market uncertainty prevails without U.S. labor data. In an auction later on Thursday, France is set to sell approximately 11.5 billion euros of 10-year and other maturity debts.
(With inputs from agencies.)
Google News