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PrintEuro zone government bond yields edge down, Fed in focus
BY Reuters | ECONOMIC | 09/16/24 02:44 AM EDTSept 16 (Reuters) - Euro zone government bond yields edged lower on Monday as investors awaited the Federal Reserve rate decision in a week packed with central bank policy meetings.
Markets expect the Fed to start its easing cycle, while the Bank of England and the Bank of Japan are considered likely to hold.
Money markets fully priced 25 basis points of rate cuts by the Fed this week and a 59% chance of a 50 bps move, according to the CME FedWatch tool.
Germany's 10-year yield, the benchmark for the euro zone bloc, was down 2 basis points (bps) at 2.13%.
Italy's 10-year yield was lower by 1.5 bps at 3.50%, and the gap between Italian and German Bunds - a gauge of the risk premium investors demand to hold Italian government bonds - stood at 137 bps.
Germany's two-year yield, which is more sensitive to changes in ECB rate expectations, dropped 2 bps to 2.19%. (Reporting by Stefano Rebaudo, editing by Barbara Lewis)
