Euro zone bonds steady as traders mull hot US inflation, await Alaska summit

LONDON: Euro zone bonds held steady as markets continue to digest Thursday’s hot US inflation print while awaiting the outcome of the Alaska summit between US President Donald Trump and Russian President Vladimir Putin later on Friday.

German 10-year yields traded flat around 2.7097%, while the rate-sensitive 2-year yields were also steady at 1.9441%.

On Thursday, US producer price data came in hotter than expected, renewing inflation concerns and prompting traders to scale back Fed rate cut bets.

Ahead of Friday’s summit in Alaska, Trump said he believes his Russian counterpart is ready to end the war in Ukraine, but that peace would likely require at least a second meeting involving Ukraine’s leader. Reuters