Euro Zone Bond Yields Hold Steady Before Inflation Data

Euro zone bond yields remained mostly unchanged on Tuesday following a sharp rise on the previous day. Investors are now awaiting June inflation data for the bloc. Key yields such as Germany's 10-year and Italy's 10-year showed minimal variations. The bond yield gaps between major euro zone countries also held steady.

Euro zone bond yields were little changed on Tuesday after rising sharply the previous day, as investors waited for June inflation data for the bloc due at 0900 GMT (1100 CET).

Germany's 10-year bond yield, the benchmark for the euro zone bloc, fell 1 basis point (bp) to 2.598%. Yields move inversely to prices. Italy's 10-year yield was lower by 0.8 basis points at 4.099%, and the gap between Italian and German bond yields held at 150 bps.

Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was down 1.3 bps at 2.908%. France's 10-year yield was 0.6 bps lower at 3.342%. The gap between France and Germany's 10-year yields held steady at 74 bps.