Euro Zone Government Bond Yields Mixed Amid Policy Announcements

Euro zone government bond yields were mixed ahead of significant economic policy announcements this week. Germany's parliament will vote on spending plans, while major banks like the Federal Reserve and Bank of Japan will announce their rate decisions. Traders are adjusting to possible ECB rate changes.

The euro zone's government bond yields showcased mixed movements as markets awaited crucial economic policy announcements. This week's spotlight focuses on the German parliament's impending vote on the country's spending plans, alongside significant policy updates from central banks worldwide.

On Wednesday, the Federal Reserve and Bank of Japan are set to unveil their rate decisions, which will be succeeded on Thursday by announcements from the Bank of England, the Riksbank, and the Swiss National Bank. Germany's 10-year bond yield was noted at 2.87%, down marginally from last week's peak.

Traders have priced an expected European Central Bank (ECB) deposit rate hike in December, with a potential rate cut being considered for April. The yield gap between Italian and German bonds maintained a 106 bps differential, reflecting investor sentiments on Italian debt risk, while the French-German spread was noted at a narrowed range.

(With inputs from agencies.)