ECB Decision Looms: Euro Zone Bond Yields Steady As Investors Await Rate Cut

Euro zone bond yields remained stable on Monday as investors anticipated the European Central Bank's upcoming decision, expected to cut interest rates from the current 4%. Germany's 10-year bond yield hovered at 2.643%, and Italy's 10-year yield fell slightly. The U.S.-German yield spread held at 184 basis points.

Euro zone bond yields were little changed on Monday as investors waited for a decision by the European Central Bank on Thursday, when policymakers are likely to cut interest rates from the current record high of 4%. Germany's 10-year bond yield, the benchmark for the euro zone bloc, was roughly flat at 2.643%.

Italy's 10-year yield was lower by 1 basis point (bp) at 3.951%, and the gap between Italian and German yields narrowed slightly to 130 bps. The spread between U.S. 10-year Treasury and German bund yields held steady at 184 bps.

Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was little changed at 3.091%.