Euro Zone Bonds Steady Amid High-Stakes Global Events

Euro zone bond yields held steady on Monday as the market braces for a week full of impactful events. At the forefront is a summit between the United States and Russia aimed at securing peace in Ukraine, and an impending deadline for a trade truce between the U.S. and China.

U.S. President Donald Trump and Russian President Vladimir Putin are set to meet this Friday in Alaska, marking a significant diplomatic encounter since former U.S. President Joe Biden met Putin in 2021. Additionally, the expiration of the 90-day pause in the U.S.-China trade war looms on Tuesday, with expectations for an extension running high.

German 10-year yields hovered around 2.684%, while two-year yields remained steady at 1.955%. Market focus is now shifting towards U.S. consumer inflation data due Tuesday, which could influence future rate cuts by the Federal Reserve. Meanwhile, Commerzbank anticipates a notably low euro zone bond supply this week due to minimal activity from member states like Germany, Finland, and Italy.

(With inputs from agencies.)