LONDON: Euro zone bond yields ticked higher on Thursday, in subdued trading due to public holidays in many European countries, with investors focused on the Bank of England’s interest rate decision later in the day.

German 10-year bond yield, the benchmark for the euro zone bloc, rose 2.3 basis point to 2.48%.

Italy’s 10-year yield was higher by 2.8 bps at 3.83%, and the gap between Italian and German yields widened 1 bp to 133 bps.

Euro zone government bonds steady ahead of inflation data

The spread between US 10-year Treasuries and German bunds narrowed 1.4 bps to 202 bps.

Germany’s two-year bond yield, which is more sensitive to European Central Bank rate expectations, was little changed at 2.94%.