Euro zone bond yields were modestly lower on Wednesday after data showed German business sentiment unexpectedly declined in September, while U.S. bond yields drifted lower too, as investors pondered the future outlook for policy rates.
Germany’s 10-year bond yield (DE10YT=RR), the benchmark for the euro zone, was down nearly 2 basis points at 2.733%.
Companies in Germany were less satisfied with their current business and expectations also darkened noticeably with Ifo institute’s business climate index easing to 87.7 in September from a revised 88.9 in August, data released on Wednesday showed.
Other regional bond yields, such as those for France and Italy, were trading in line with German debt, with yields on longer-tenor debt drifting lower as well. Germany’s 30-year bond yield (DE30YT=RR) dipped about 2 bps to 3.327%.
U.S. 10-year US10Y and 30-year Treasury yields (US30YT=RR), meanwhile, dipped to 4.102% and 4.714%,…
