Euro zone bond yields lower before US CPI hurdle

Italy's 10-year yield was lower by 1.9 basis points at 3.86%, and the gap between Italian and German bunds widened to 133 bps. The spread between U.S. 10-year Treasuries and German bunds widened slightly to 191 bps.

Germany's 10-year bund yield was slightly lower on Wednesday but remained above 2.5% before key U.S. consumer prices data that could help determine whether the Federal Reserve will lower borrowing costs this year and by how much. Germany's 10-year yield, the benchmark for the euro zone bloc, was down 2.0 basis points to 2.52%.

Germany's two-year bond yield, which is more sensitive to changes in European Central Bank rate expectations, was little changed at 2.98%. Italy's 10-year yield was lower by 1.9 basis points at 3.86%, and the gap between Italian and German bunds widened to 133 bps.

The spread between U.S. 10-year Treasuries and German bunds widened slightly to 191 bps.