What’s going on here?
Euro zone bonds traded in a narrow range as investors waited for US payroll data revisions and Fed meeting minutes to better gauge the interest rate outlook.
What does this mean?
The yield on Germany’s 10-year benchmark bond held steady at 2.22%, following small declines over the last few sessions. This stability suggests recent minor increases in bond prices, as yields move inversely to prices. Market participants are keenly awaiting preliminary revisions to US non-farm payrolls data for April 2023 to March 2024, and insights from the Fed’s July meeting minutes, where policymakers decided to keep interest rates unchanged. The release of July payrolls data in early August caused a sharp selloff in global equity markets, leading to a rush towards government bonds which has now mostly stabilized.
Why should I care?
For markets: Tracking the rate talk.
Traders will be closely watching Fed Chair Jerome Powell’s Friday…
