Euro Zone Bond Yields Hold Steady Ahead of Crucial ECB Meeting

Euro zone bond yields remained stable on Wednesday, maintaining levels above recent lows, as investors awaited the European Central Bank's imminent policy meeting. The ECB is expected to announce another rate cut. Germany and Italy's bond yields showed minor fluctuations ahead of the meeting.

Euro zone bond yields held their ground on Wednesday, stalling above the multi-month lows seen last week. As investors anticipate the European Central Bank's upcoming policy meeting, forecasts suggest another rate cut is likely.

Key figures at the ECB, Francois Villeroy de Galhau and Yannis Stournaras, have both hinted at a probable decrease in borrowing costs by a quarter-point, following previous cuts in June and September. This decision will be announced at Thursday's policy update.

Germany's 10-year yield, serving as a benchmark for the euro area, dropped slightly to 2.238%. Meanwhile, Italy's 10-year yield saw a minimal fall, reducing the spread between Italian and German yields to 130 basis points.

(With inputs from agencies.)