Euro Zone Bonds Steady As Investors Eye Key Economic Data

Euro zone bond yields remain stable ahead of significant economic data releases on Thursday and a key meeting of global central bankers. The U.S. economic data had previously eased recession fears. Investors are now waiting for purchasing managers' index surveys and a speech from Fed Chair Jerome Powell for further guidance.

Euro zone bond yields inched lower on Tuesday as investors awaited fresh economic data and a critical meeting of central bankers later in the week. The calmness in the markets follows earlier volatility driven by strong U.S. economic data, easing concerns of an impending recession.

Germany's 10-year bond yield, a benchmark for the region, was marginally down by 1 basis point, standing at 2.248%. Investors will focus on purchasing managers' index surveys from the euro zone, Britain, and the United States on Thursday to gauge the health of the private sector.

The Federal Reserve's annual gathering in Jackson Hole, Wyoming, begins on the same day, with a highly anticipated speech by Fed Chair Jerome Powell. Market participants will scrutinize his remarks for any economic concerns or hints about a potential rate cut in September. Despite earlier expectations of a 50-basis-point cut, recent data suggests a reduced probability of such a significant move.

Germany's economy continues to struggle, as reflected in the slow growth of negotiated wages. Meanwhile, Sweden's central bank cut interest rates by 25 basis points to 3.5% in response to a rapid decline in inflation.

(With inputs from agencies.)