Euro Zone Bond Yields Dip As Investors Eye Data

Euro zone government bond yields saw a slight decline as investors focus on upcoming Purchasing Managers Index data that could influence the ECB's next moves. The German 10-year bund yield, recording minimal changes, remains the focal point as the ECB meeting approaches.

Euro zone bond yields dipped slightly on Friday, as investors turned their attention to the upcoming Purchasing Managers Index data, which could shape expectations for the European Central Bank's monetary policy trajectory.

Benchmark German Bund yields ended the week largely unchanged despite President Donald Trump's tariff comments, with the ECB policy meeting slated for next week now in focus. Germany's 10-year bond yield fell by one basis point to 2.50%, reflecting a weekly increase of 0.5 basis points.

U.S. Treasury yields showed a decline, with the 10-year yield down by 2 basis points to 4.62% during early London trading hours. Meanwhile, Germany's two-year yield, which is more sensitive to ECB rate speculation, dropped by one basis point to 2.23%. Markets currently anticipate an ECB deposit facility rate of 2.05% by the end of 2025, a decrease from the present rate of 3%.

(With inputs from agencies.)