Euro zone yields steady at multi-week lows

LONDON, June 24 (Reuters) - The 10-year German Bund yield held near its lowest in 11 weeks on Wednesday on expectations that euro zone inflation will remain broadly in check and limit the amount of policy tightening needed by the European Central Bank.

The euro zone benchmark was last at 2.91%, down marginally on the day at its lowest since early April. It has fallen nearly 8 basis points (bps) this week after ECB President Christine Lagarde told the European Parliament on Monday there was no evidence of the kind of pick-up in inflation that would warrant more forceful policy action, and after soft inflation readings from business activity data.

The ECB raised interest rates this month and markets are pricing in another increase of 25 bps by the end of the year, with little chance of a third move in 2026.

In contrast, traders have been turning more hawkish on the U.S. Federal Reserve, sending Treasury yields higher. The U.S. 10-year yield was last at 4.48%, putting it about 157 bps above its German equivalent, the most since August 2025.

Short-dated euro zone debt was also broadly steady, with Germany's 2-year yield flat at 2.5%. At the longer end, Germany's 30-year yield was down nearly 2 bps at 3.46%, also touching its lowest since early April.

(Reporting by Alun John Editing by David Goodman )