Euro zone bonds traded in a tight range on Wednesday, as investors awaited revisions to US payrolls data and the release of the Federal Reserve’s July meeting minutes for further clues on the interest rate outlook.

The German 10-year bond yield, the benchmark for the euro zone bloc, was little changed at 2.22%, following marginal declines in the past three sessions.

Yields move inversely to prices.

Market participants are awaiting preliminary revisions to US data that includes the nonfarm payrolls reports from April 2023-March 2024, as well as minutes from the Fed’s July meeting where policymakers decided to hold rates steady.

July payrolls data, released in early August, contributed to a sharp sell off in equities globally and a rush to government bonds, which has since largely unwound.

The bigger focus is on the central bankers’ gathering at Jackson Hole, Wyoming.

Euro zone yields edge down, markets cautious before economic data

Traders will be closely assessing Fed Chair Jerome Powell’s Friday speech for hints on the size of a potential rate cut in September.

Germany’s two-year bond yield, which is more sensitive to European Central Bank rate expectations, was flat at 2.41%.

Italy’s 10-year yield edged up 1.2 basis points to at 3.60%, and the gap between Italian and German bunds was 137 bps.