LONDON: Euro zone government bonds edged higher on Monday, as the unusual absence of US tariff-related headlines left investors waiting for direction from economic data due later in the week.
Germany’s 10-year yield rose nearly 2 basis points to 2.49%, but was still near the lower end of its recent range.
US data will be in focus, with PCE inflation and GDP numbers due Wednesday, and nonfarm payrolls for April on Friday.
Investors will inspect the data for evidence of the economic hit they expect from the disruption and uncertainty caused by tariffs, though this week’s batch could be a little soon.
Euro zone bond yields rise, Ukraine in focus
In Europe, inflation data will be published, including in Spain on Tuesday, and Germany, France and Italy on Wednesday.
A higher-than-expected print could cause investors to reassess expectations the European Central Bank will continue cutting interest rates to support the European economy, though, barring a major surprise, the US data will likely be the main focus.
Italy’s 10-year yield was flat at 3.59%, and Germany’s rate-sensitive two-year yield nudged up 1 bp to 1.75%.
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