LONDON: Euro zone government bond yields fell 3-6 basis points (bps) across the board, ending a six-week sell-off, at least for the time being.
The yield on Germany's 10-year bond, the benchmark for the region, fell 4 bps by 0737 GMT to 0.30 percent.
Italian government bonds, which bore the brunt of Monday's losses, were among the day's biggest gainers: the yield on Italy's 10-year bonds fell 5.5 bps to 1.97 percent. That is almost 20 bps below Monday's high of 2.16 percent, according to Tradeweb prices.
Whether the trend lasts may depend on Italian economic data due out later on Tuesday, said DZ Bank strategist Daniel Lenz.
"Italian GDP figures are key today - if they undershoot expectations then the recovery (in government bonds) could be very short-lived," he said.
Comments
Comments are closed.