LONDON: Government bond yields in the euro area were little changed on Tuesday, with focus falling on economic growth and inflation numbers from some of the bloc's biggest economies.
France's economy, the second largest in the euro area, grew 0.3 percent in the January-March period, the third quarter in a row at that rate, preliminary data showed. It was in line with market expectations.
Spain's economy, the fourth biggest in the currency bloc, expanded a stronger-than-expected 0.7 percent in the first three months of the year.
Signs of some stabilisation in the euro area economy helped offset the weaker tone overnight from China, where readings on manufacturing activity failed to meet expectations.
In early Tuesday trade, 10-year bond yields across the single currency bloc were flat to marginally higher on the day .
Germany's benchmark 10-year bond yield rose above zero percent to trade at 0.002 percent, but held below one-month highs hit earlier this month.
Inflation data from German states, released ahead of the countrywide number later this session, was also in focus.
Data from Saxony showed consumer price inflation in the German state rose 1.9 percent in April from a year earlier.
"The focus is on the inflation numbers which were weak last month," said Pooja Kumra, European rates strategist at TD Securities in London.
"Given the fact that tomorrow is a holiday in much of Europe and we have the Fed meeting, volumes are light," she said, referring to a two-day meeting of the U.S. Federal Reserve that concludes on Wednesday.
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