Euro zone government bond yields were little changed after U.S. data showed U.S. consumer spending increased slightly more than expected in August.
U.S. consumer spending, which accounts for more than two-thirds of economic activity, rose 0.6% last month after an unrevised 0.5% advance in July, the Commerce Department’s Bureau of Economic Analysis said on Friday.
Germany’s 10-year Bund yields, the bloc’s benchmark, dropped 4 basis points (bps) to 2.73%. It was falling by 3 bps right before the U.S. data.
Traders had already been expecting a benign inflation reading.
U.S. Treasuries have taken the lead in the euro area’s fixed income market this week, with investors uncertain about the Federal Reserve’s easing path while expecting the European Central Bank to keep rates steady through early 2027.
Thursday’s U.S. economic data have cast doubt on market expectations for Fed policy, prompting traders to scale back bets on…
