Eurozone Bonds React as Economists Await Key Data

Eurozone government bonds saw slight gains amid the lack of U.S. tariff-related news, with investors focusing on upcoming economic data. Germany's yield increased before settling, influenced by both fiscal plans and U.S. tariff announcements. Anticipation builds around European inflation figures and potential rate cuts by the ECB.

Eurozone government bonds ticked upward on Monday as markets absorbed the absence of new U.S. tariff developments. Investors remained cautious, waiting for critical economic data expected later in the week to set a clearer direction.

Germany's 10-year bond yield experienced a modest rise, yet it stayed near its recent lower levels. This stability comes despite earlier fluctuations resulting from Germany's plan to escalate borrowing and President Trump's comprehensive tariff announcements, leading investors to seek German debt as a safe haven.

Upcoming economic events, including PCE inflation and GDP figures from the U.S., could influence investor expectations for future Federal Reserve actions. Meanwhile, ECB's potential rate cuts loom as European inflation data is set to impact market strategies.

(With inputs from agencies.)