Euro zone government bonds steady ahead of inflation data

30 Apr, 2024

LONDON: Euro zone government bond yields were steady on Tuesday ahead of the release of bloc-wide inflation data following slightly hotter-than-expected French inflation and a day after other national data suggested core inflation is continuing to slow.

The German 10-year bond yield, the benchmark for the euro zone bloc, was little changed at 2.53%, down from a five-month high of 2.65% last week. European inflation is in focus on Tuesday.

French numbers showed consumer prices rose 2.4% year on year in April, above a 2.2% rise expected by analysts polled by Reuters.

The French 10-year yield was little changed at 3.03%, rising about 1 basis point after the data. Euro zone wide figures are due at 0900 GMT.

Euro zone government bond yields edge down ahead of inflation data, Fed

German inflation rose slightly in April, Monday data showed, but core inflation, which excludes volatile food and energy prices, eased to 3.0% in April from 3.3% in March.

Analysts said the inflation prints should not disrupt market expectations that the European Central Bank will cut rates at its June meeting.

Italy’s 10-year yield was higher by 0.8 basis point? at 3.83%, and the gap between Italian and German bunds widened 1.2 basis points to 129 bps.

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