FRANKFURT, April 10 ― Euro zone government bond yields struggled for direction today after tracking US Treasuries earlier this week as investors await US inflation data, which might shape the Federal Reserve's monetary policy path.
Germany's 10-year yield was down 0.5 basis points (bps) at 2.36 per cent. The euro zone benchmark hit a three-week high of 2.457 per cent on Monday.
Money markets priced in 85 bps of European Central Bank rate cuts in 2024, compared with 81 bps early yesterday and 91 bps on Thursday, tracking similar moves in the US market.
The ECB will meet on Thursday and is widely expected to keep rates unchanged while the market will focus on any hints from President Christine Lagarde about future moves.
The US benchmark 10-year Treasury yield was flat at 4.364 per cent, after reaching 4.464 per cent on Monday, its highest since late November.
Italy's 10-year yield, the benchmark for the euro zone periphery, was down 0.5 bps at 3.71 per cent. ― Reuters
