Eurozone Bond Yields Hold Steady Amid ECB Rate Cut Expectations

Eurozone bond yields maintained stability, hovering above recent lows, as investors speculated on potential ECB rate cuts at an upcoming policy meeting. Economist consensus points to a likely reduction. U.S. economic data has influenced yield fluctuations, with Germany's economic contraction adding further complexities to the situation.

Eurozone bond yields remained stable on Wednesday, staying above last week's multi-month lows. Investors are eyeing the upcoming European Central Bank policy meeting, where another rate cut is anticipated.

ECB officials, including Francois Villeroy de Galhau and Yannis Stournaras, have suggested a potential reduction in rates by a quarter-point. Over 90% of economists in a Reuters poll expect a 25 basis point cut, with another move predicted in December.

Germany's economy faces a continued downturn, projected to shrink by 0.2% in 2024. This follows a week of rising yields driven by robust U.S. jobs data and speculation about U.S. rate cuts.

(With inputs from agencies.)