Euro Zone Yields Steady as U.S. Election Looms

Euro zone bond yields remain steady amid a volatile week featuring the U.S. presidential election and Federal Reserve interest rate decisions. Germany's 10-year bond yield remains largely unchanged, while rises in U.S. yields due to a strong economy influence euro zone inflation data.

Euro zone bond yields steadied on Monday as the week promises volatility with the U.S. presidential election and a Federal Reserve interest rate decision looming. Germany's 10-year bond yield, the euro zone benchmark, held at 2.411%, having peaked at 2.447% last week.

U.S. Treasury yields, meanwhile, adjusted to election developments, with the 10-year yield falling 8 bps to 4.279% as a poll showed Vice President Kamala Harris leading over former President Donald Trump in Iowa. Investors are bracing for possible Trump victory impacts on inflation, tariffs, and tax cuts.

In anticipation of the election and Federal Reserve's rate decision, analysts like Commerzbank's Rainer Guntermann expect market volatility. The MOVE index for U.S. government bonds hit its highest in over a year, reflecting investor caution amid potential new economic policies.

(With inputs from agencies.)