Euro Zone Bonds Steady Amid Global Economic Events

Euro zone government bond yields held their ground on Thursday's early trading, as attention shifted to developments outside the currency union. Key global events included the upcoming U.S. employment data release and the assessment of the British gilt market following its sharp downturn on Wednesday.

Germany's 10-year bond yield, a crucial benchmark for the euro zone, remained unchanged at 2.61%. Similarly, the rate-sensitive two-year yield showed little movement at 1.86%. Investors were particularly keen on the U.S. non-farm payroll figures, predicted to reveal a further slowdown in the labor market in June, with unemployment potentially reaching a 3.5-year high of 4.3% due to economic uncertainties tied to the Trump administration.

Market participants also focused on the U.S., with President Donald Trump's tax legislat on being a point of contention among House Republicans. In Europe, bond market watchers turned to Britain, where recent upheavals in public finances had impacted continental bonds. However, reassurances from Prime Minister Kier Starmer regarding finance minister Rachel Reeves, coupled with minor yield adjustments, offered some stability.

(With inputs from agencies.)