Euro Zone Bonds Rise Amid Anticipation of Central Bank Meetings

Euro zone bond yields increased as investors await European Central Bank and U.S. Federal Reserve meetings for interest rate guidance. Demand for French and Italian debt grows, decreasing risk premiums. While Germany's 10-year yield rose, France's bond sale saw significant interest. U.S. Fed's rate decision upcoming.

Euro zone government bond yields experienced an uptick on Tuesday, reversing Monday's decline. Investors are keenly eyeing the upcoming European Central Bank (ECB) and the U.S. Federal Reserve meetings, hoping for more insight into the future trajectory of interest rates.

On Monday, borrowing costs decreased on both sides of the Atlantic as concerns over the high valuations of U.S. tech stocks prompted investors to turn to the safety of bonds. Stocks steadied on Tuesday after U.S. chipmakers saw a massive selloff. Meanwhile, demand for riskier French and Italian debt led to lower risk premiums compared to German debt.

Germany's 10-year bond yield increased by 3 basis points to 2.56%, while France's recent bond sale attracted record demand, showing strong investor appetite despite previous market turmoil. As the ECB meeting approaches, the focus remains on potential rate cuts, with discussions on the future direction of monetary policy intensifying.

(With inputs from agencies.)