Euro Zone Bond Yields Drop Amid Global Growth Concerns

Euro zone bond yields decreased for the third consecutive session as investors worried about global growth. U.S. job openings fell to a 3-1/2 year low, indicating a slowing labor market. This led investors to increase bets on rate cuts, causing yields to drop. The German 10-year bond yield hit its lowest since August 22.

Euro zone bond yields fell for a third straight session on Thursday as investors continued to worry about global growth.

Data on Wednesday showed U.S. job openings fell to their lowest level in 3-1/2 years in July, adding to signs of a slowing labour market. The key monthly U.S. employment report for August is due on Friday. Investors have nudged up their bets on U.S. and global rate cuts, helping pull down bond yields, while also moving into the safety of government debt as stocks have stumbled.

Germany's two-year bond yield, which is sensitive to European Central Bank rate expectations, fell 2 basis points (bps) to 2.288% on Thursday, its lowest since a previous bout of economic worries sent yields tumbling on Aug. 5. The German 10-year bond yield, the benchmark for the euro zone bloc, also fell 2 bps to 2.198%, its lowest since Aug. 22. Yields fall as prices rise, and vice versa.

​Italy's 10-year yield was little changed​ at 3.572%, and the gap between Italian and German yields stood at 137 bps.

(With inputs from agencies.)