Euro zone government bond yields fell Wednesday after data showed US inflation cooled in July. Germany's 10-year and 2-year yields both edged lower, while Brent crude held steady amid ongoing Strait of Hormuz tensions. The Federal Reserve is expected to weigh further data before its September rate decision.
Euro zone government bond yields fell Wednesday after fresh data showed US inflation cooled in July, pulling borrowing costs lower across the currency bloc. Germany's 10-year bond yield, the benchmark for the euro zone, fell 2 basis points to 3.157%. The country's 2-year yield also declined, slipping 1 basis point to 2.774%.
The move followed a US report showing consumer prices rose 3.4% year-over-year in July. That marked a decrease from 3.5% in June and matched economist forecasts. Core inflation, which excludes food and energy prices, also eased slightly on an annual basis, and US Treasury yields moved lower as a result.
Brent crude, meanwhile, held flat at $88.90 a barrel. Traders kept watching talks over reopening the Strait of Hormuz, but prospects for a quick deal appeared to fade after new attacks on ships in the Gulf and firmer stances from the US and Iran.
Investors and analysts said the Federal Reserve's rate-setting committee will likely study August inflation data closely before its next interest rate decision in September.
Source: Investing.com
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