Euro Zone Bonds Steady Amid U.S. Jobs Report Anticipation

Euro zone bonds remained mostly unchanged as investors await the U.S. jobs report, which could influence upcoming Federal Reserve decisions and the presidential election outcome. Despite a recent rise in yields, economic growth and inflation data suggest the ECB won't cut rates significantly soon.

Euro zone government bonds held steady on Friday as investors anxiously awaited a U.S. jobs report, which could impact Federal Reserve decisions and the outcome of the presidential election. The German 10-year bond yield, a key euro zone benchmark, remained at 2.394% after a sharp climb last month.

Recent data, including stronger-than-expected third-quarter growth and rising inflation, suggests that the European Central Bank is unlikely to implement a large interest rate cut. This has kept Germany's two-year bond yield stable at 2.30%, after reaching a near two-month high previously.

As domestic economic reports were sparse, attention turned to the U.S. nonfarm payrolls report, expected to show a slowdown in job growth. This, alongside upcoming Federal Reserve rate decisions and the tight presidential race between Donald Trump and Kamala Harris, has spurred heightened investor caution.

(With inputs from agencies.)