Euro Zone Bond Yields Edge Lower Amid Market Volatility

Euro zone bond yields saw a decline on Thursday following days of volatile trading. The German 10-year bond yield decreased by 3.1 basis points, and the two-year bond yield fell by 1 basis point. Investors are now focused on U.S. jobless claims data and upcoming Fed speeches for further cues.

Euro zone bond yields edged lower on Thursday, as investors sought more clues on the outlook for global monetary policy after days of volatile trading that pushed yields to multi-month lows. German 10-year bond yield, the benchmark for the euro zone bloc, fell 3.1 basis points to 2.24%, while the two-year bond yield, which is more sensitive to European Central Bank rate expectations, fell 1 basis points to 2.36%.

The yields had risen on Wednesday, with the 10-year yield marking its largest daily increase in more than five weeks, as improved risk appetite prompted investors to sell bonds. Nevertheless, euro zone government bond yields remain close to Monday's multi-month lows following a weak U.S. jobs report last week. This report triggered fears of an economic downturn, which could lead to more significant rate cuts from the Federal Reserve and benefited the U.S. Treasury market.

Attention now turns to U.S. weekly jobless claims data and speeches from Federal Reserve policymakers scheduled for later on Thursday. Italy's 10-year yield decreased by 1.3 basis points to 3.69%, while the spread between Italian and German bunds widened by 2 basis points to 144 bps.

(With inputs from agencies.)