LONDON: Euro zone bond yields dipped on Wednesday on concerns after rising the previous day about monetary policy and politics, with traders waiting for the second day of US Federal Reserve Chair Jerome Powell’s testimony before Congress.

Germany’s 10-year bond yield, the benchmark for the euro zone bloc, fell 3 basis points (bps) to 2.55% after climbing 4 bps on Tuesday.

Yields move inversely to prices.

France’s 10-year bond yield was down 5 bps to 3.211%, taking the gap between French and German yields 3 bps lower to 66 bps.

Euro zone bond yields tick higher as traders await Fed’s Powell

The so-called spread has been in focus during France’s election period.

Italy’s 10-year yield was lower by 5 bps at 3.907%, and the gap between Italian and German yields narrowed 3 bps to 136 bps.

Germany’s two-year bond yield, which is more sensitive to European Central Bank rate expectations, was 2 bps lower at 2.909%.