LONDON, Jan 29 (Reuters) – Euro zone bond yields nudged lower in early trade, moving in line with U.S. debt, 유로247주소 as traders caught their breath ahead of the Federal Reserve’s meeting later in the day and European Central Bank’s on Thursday.
Germany’s 10 year yield, the benchmark for the euro zone, was last down 2 basis points at 2.54%, broadly in the middle of its recent range.
The day’s main scheduled macro economic event is the Federal Reserve interest rate decision.
While the decision itself will likely be unremarkable – the Fed is expected to hold rates steady – investors will be watching chair Jerome Powell’s press conference for any sense of how he is processing both Donald Trump’s early economic policies and this week’s tech-led equities selloff.
The latter caused traders to up bets on the scale of Fed easing they expect this year, driving a rally in U.S. and European government bonds on Monday, though they have since steadied.
The 10-year U.S. Treasury yield was last at 4.52%, 3 bps lower on the day.
The ECB is expected to cut interest rates by 25 basis points when it meets on Thursday.
Germany’s rate sensitive two year yield was down 2 bps at 2.25%, and Italy’s 10-year yield was down nearly 4 bps at 3.62%.
The spread between French and German 10 year yields was last 72 bps around its tightest since mid November.
(Reporting by Alun John Editing by Tomasz Janowski)