Euro Zone Bond Yields Steady Amid Economic Data Deluge

Euro zone bond yields remained steady despite a wave of economic data highlighting a sluggish economy and low inflation. Moody's downgraded France's credit rating, affecting the risk premium on French debt. ECB President Christine Lagarde hinted at further rate cuts, while markets await a U.S. interest rate decision.

On Monday, euro zone government bond yields held firm as a slew of European economic data painted a picture of a tepid economy with dwindling inflation. French government debt's risk premium rose following a Moody's credit rating downgrade, before slightly narrowing.

Germany's 10-year bond yield, a key euro zone benchmark, remained flat at 2.245%, with the latest data showing a minor easing in the decline of euro zone business activity. Comments from European Central Bank President Christine Lagarde flagged potential future rate cuts.

Investors are also eyeing the upcoming U.S. interest rate decision. A strong stance from the Fed could impact U.S. bond markets and spill over into Europe. France and Italy's bond yields experienced slight fluctuations, with continued pressure from economic factors.

(With inputs from agencies.)