Euro Zone Bond Yields Inch Up Amid Inflation Focus

Euro zone bond yields rose slightly as markets absorbed Nvidia's earnings. Spanish inflation fell to 2.4% year-on-year in August, a decline from 2.9% in July. German state data is awaited, with more national and euro zone figures due Friday. Germany's and Italy's 10-year bond yields also saw minor increases.

In a market adjustment following Nvidia's earnings, euro zone bond yields saw a slight increase on Thursday. This shift comes as Europe's focus remains on inflation metrics.

Spanish inflation dropped to 2.4% year-on-year in August from 2.9% in July, based on data standardized for European Union comparisons. German state data is anticipated later today, followed by comprehensive national and euro zone figures expected on Friday.

Germany's 10-year bond yield rose by 2.6 basis points (bps) to 2.28%, nearly touching Tuesday's one-month high. Italy's 10-year yield increased by 1.5 bps to 3.66%, slightly narrowing the yield gap with Germany to 137 bps. Additionally, Germany's two-year bond yield, more attuned to European Central Bank rate forecasts, edged up by 1 bp to 2.39%.

(With inputs from agencies.)