Euro Zone Bond Market Awaits Key Economic Data Release

Eurozone bond yields remained stable as investors await upcoming data on inflation and economic growth, which could influence ECB policy. A survey indicated recovering German consumer sentiment, but falling economic expectations. U.S. bond yields also steadied, with attention on job data following September's robust employment report.

Eurozone government bond yields held steady on Tuesday, as investors awaited crucial data on domestic inflation and growth expected later in the week. This information has the potential to impact European Central Bank policy greatly. Germany's 10-year bond yield, a key benchmark for the eurozone, was recorded at 2.285%, close to Monday's three-month high of 2.352%.

The bond market's movements were modest compared to the sell-off linked to U.S. Treasuries late last week. Economic indicators pointing to a slowing eurozone economy, combined with ECB policymakers' concerns over missing the 2% inflation target, have heightened expectations for more significant rate cuts.

A survey revealed German consumer sentiment is on a path to recovery moving into November. However, economic expectations for the next year have decreased for the third consecutive time. Key focuses this week include the initial eurozone third-quarter growth figures and inflation data from Germany, France, and the broader eurozone.

(With inputs from agencies.)