Steady Euro Zone Bond Yields Amid Inflation Concerns

Euro zone government bond yields remained stable as U.S. inflation figures indicated rising prices due to tariffs, impacting U.S. Treasury yields. German 10-year yields stayed steady, while UK CPI data revealed a spike in Britain's annual consumer price inflation, reaching its highest in over a year.

Euro zone government bond yields held their ground on Wednesday, following new inflation data from the U.S. that implied tariffs might be contributing to rising costs. This news pushed U.S. Treasury yields to their highest points in over a month.

The U.S. June Consumer Price Index (CPI) showed a 0.3% increase, prompting investors to reassess potential Federal Reserve rate cuts. Consequently, German 10-year yields remained unchanged at 2.71%, close to a four-month peak reached earlier in the week.

Meanwhile, UK CPI data indicated a surprising rise in consumer price inflation, hitting 3.6% in June, the highest annual rate seen in over a year. Euro-centric data, including the euro zone's May trade balance and final Italian CPI, were also in focus.

(With inputs from agencies.)