Summary

Euro Zone Bond Yields Steady as Investors Await More US Economic Data

Summary

Euro zone bond yields were little changed on Tuesday, August 15, as investors awaited the release of US economic data on Wednesday. The data is expected to provide more insight into the health of the US economy and could influence the European Central Bank's (ECB) decision on interest rates.

Market Reaction

In early European trading, the yield on the 10-year German Bund, the benchmark for the euro zone, was little changed at 0.25%. The yield on the 10-year French OAT was also little changed at 0.68%. Italian and Spanish bond yields were also steady.

Investors Waiting for US Data

Investors are closely watching the US economic data, which is expected to be released on Wednesday. The data includes retail sales, industrial production, and consumer sentiment. Strong data could boost the US dollar and weigh on euro zone bond yields. However, weak data could have the opposite effect.

ECB Decision on Interest Rates

The ECB is scheduled to meet on September 7 to discuss interest rates. The central bank is widely expected to keep interest rates unchanged at its current level of 0.0%. However, the ECB could change its forward guidance if the US economic data is strong.

Conclusion

Euro zone bond yields are likely to remain volatile in the coming weeks as investors await more US economic data and the ECB's decision on interest rates.