Euro Zone Bonds Steady Amid Awaited U.S. Jobs Data

Euro zone bonds remained largely unchanged on Friday as traders anticipated key U.S. jobs data and considered the impact of a Labour victory in Britain's general election. Germany's 10-year bond yield dropped slightly, and Italy's yield also declined, widening the gap between Italian and German bond yields.

Euro zone bonds were little changed on Friday morning as traders waited for key U.S. jobs data later in the day, while also weighing up a landslide Labour victory in Britain's general election.

Germany's 10-year bond yield, the benchmark for the euro zone bloc, fell 0.9 basis points (bps) to 2.58%. Yields move inversely to prices. Italy's 10-year yield was lower by 1.4 bps at 3.99%, and the gap between Italian and German bond yields widened 0.4 bps to 141 bps.

France's 10-year bond yield was up 0.7 bps ahead of the final round of voting in parliamentary elections on Sunday, at 3.286%. Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was down 1.1 bps at 2.93%.