Euro Zone Bond Yields Rise as Services Sector Shines

Euro zone bond yields increased following better-than-expected survey data in the services sector for August, despite a drop in wage growth. Germany's business activity continued to decline, offset by stable U.S. economic data. The European Central Bank's rate expectations remained mostly unchanged.

Euro zone bond yields climbed on Thursday after survey data revealed that the region's services sector performed better than anticipated in August, although wage growth showed a notable decline.

The benchmark 10-year bond yield in Germany rose by 4 basis points to 2.243%, staying within its trading range after rebounding from an early August dip. Typically, bond yields move inversely to prices.

According to the Purchasing Managers' Index (PMI) survey, business activity in the euro zone was robust in August with the services sector being a key highlight. However, Germany experienced another month of business contraction. Meanwhile, growth in negotiated wages sharply decreased to 3.55% in the second quarter from 4.74% in the first quarter.

(With inputs from agencies.)