Euro bonds remain stable: Euro zone bonds were steady on Wednesday as investors awaited key U.S. updates to gauge the future direction of interest rates. Market attention was focused on upcoming revisions to U.S. payrolls data and minutes from the Federal Reserve’s July meeting. The yield on 10-year German bonds, the euro zone benchmark, was steady at 2.22 percent, reflecting minimal changes over the past three days. Bond yields, which move inversely to prices, showed little fluctuation.
US data sparks interest
Traders are particularly interested in preliminary adjustments to U.S. data, including nonfarm payrolls reports covering the period from April 2023 to March 2024. Also eagerly awaited are the minutes from the Fed’s July meeting, during which policymakers opted to keep rates unchanged. The July payrolls data, released earlier this month, triggered a major sell-off in global stocks and spurred a rush into government bonds, though much of that move has since been reversed.
Jackson Hole is expected
Looking ahead, the central bankers’ meeting in Jackson Hole, Wyoming, is attracting considerable attention. Market participants are eagerly awaiting Fed Chairman Jerome Powell’s speech on Friday, which may offer insight into the likelihood of a rate cut in September. Meanwhile, the yield on two-year German bonds, most sensitive to expectations around European Central Bank rates, was unchanged at 2.41%. The yield on 10-year Italian bonds rose 1.2 basis points to 3.60%, with the spread between Italian and German bonds at 137 basis points. (With information from Reuters)
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