LONDON: Euro zone bond yields fell slightly on Wednesday, after rising sharply the previous day, as investors waited for March inflation data for the bloc.

Euro zone bond yields dip, with inflation in focus

• Germany’s 10-year bond yield, the euro zone benchmark, was last down 3 basis points (bps) at 2.382%. Yields move inversely to prices.

• The yield rose 12 bps on Tuesday, catching up after a holiday with a sharp rise in US yields on Monday, which was driven by stronger-than-expected survey data.

• Data due at 0900 GMT (1100 CEST) is expected to show inflation held steady at 2.6% year-on-year in March, although some economists think Tuesday’s soft regional price data means the figure could come in lower.

• Germany’s two-year bond yield was little changed at 2.811%. The yield is sensitive to European Central Bank interest rate expectations and has risen 39 bps this year.

• Italy’s 10-year bond yield was down 3 bps at 3.777%. The closely watched gap between Italian and German 10-year yields stood at 138 bps, up from a more than two-year low of 115 bps in mid-March.