By Stefano Rebaudo
Euro zone benchmark Bund yields hovered near a four-week high on Thursday, tracking Wednesday’s moves in U.S. Treasuries, as investors awaited the Bank of England’s policy decision later in the day.
Germany’s 10-year yields (DE10YT=RR) were flat at 2.67% after hitting 2.676% earlier in the session, their highest level since October 10.
Benchmark 10-year U.S. Treasury yields US10Y fell one basis point after rising 6.5 bps the day before as data showed continued U.S. economic resilience and a Treasury refunding announcement indicated potential future increases in long-dated debt issues.
The European Central Bank must keep its options open for interest rate moves at upcoming meetings, ECB policymaker Francois Villeroy de Galhau said during a conference on Wednesday. Another ECB policymaker, Joachim Nagel, said the ECB should be vigilant on inflation, but not complacent.
Money markets priced in an about 40%…
