Steady Euro Zone Bond Yields Amid Key Economic Data Awaiting

Euro zone bond yields remained stable on Tuesday as investors waited for key July inflation data from member states and anticipated the U.S. Federal Reserve's interest rate decision. Germany's 10-year bond yield was steady at 2.363%, while Italy's 10-year yield remained unchanged at 3.714%.

Euro zone bond yields saw little change on Tuesday morning, as investors held their breath for July inflation data from member states and looked ahead to the U.S. Federal Reserve's upcoming interest rate decision on Wednesday.

Germany's 10-year bond yield, the benchmark for the euro zone, remained broadly steady at 2.363%, hovering just above a six-week low. Investors noted that yields move inversely to prices.

Preliminary inflation figures for Spain were released at 0700 GMT, with individual German states' data following at 0800 GMT. The euro zone's second-quarter GDP data is expected at 0900 GMT, along with overall euro zone inflation data set to be released the following day at 0900 GMT.

Meanwhile, Italy's 10-year yield stayed unchanged at 3.714%, and the spread between Italian and German bond yields was noted at 135 basis points. Germany's two-year bond yield, which is considered more responsive to European Central Bank rate expectations, edged slightly higher to 2.6%.

(With inputs from agencies.)