Euro Zone Bond Yields Steady ahead of U.S. Inflation Data

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June 25 Reuters Euro zone bond yields steadied on Friday ahead of U.S. inflation data which will give the latest steer on price pressures as economies bounce back from the coronavirus slump.

Following a hefty selloff last week after U.S. Federal Reserve policymakers brought forward their first projected rate hike to 2023 from 2024, euro zone bond markets calmed this week as they adapted to the Feds messaging.

Germanys 10year yield, the benchmark for the euro area, is set to end the week a mere 2 basis points higher this week after a 7 bps rise last week.

With little data coming out of the single currency bloc, euro area bond yields were steady in early Friday trade.

Germanys 10year yield was unchanged at 0.18 at 0716 GMT, and Italian 10year yields were up less than a basis point at 0.87.

Attention turns on Friday to the U.S. core personal consumption expenditure index reading due at 1230 GMT, which economists polled by Reuters expect to post its fastest rise in nearly three decades, with a yearonyear rise of 3.4.

Today, the focus will shift back to U.S. inflation with the core PCE due for release, said Michael Leister, head of interest rates strategy at Commerzbank.

Markets should be well prepared for a strong print as most of the subcomponents have already been published.

Consumer price data rising at its fastest pace in 13 years in May had failed to drive a strong reaction from bond markets earlier in June. U.S. initial unemployment benefits and durable goods…

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