FRANKFURT, 2nd April, 2024 (WAM) -- Euro zone government bond yields rose on Tuesday, playing catch-up with U.S. Treasury moves on Monday when economic data raised doubts about whether the Federal Reserve could deliver three interest rate cuts this year, Reuters reported on Tuesday.
Euro area markets, which opened after a holiday, await inflation figures from Germany later in the session and from the euro area on Wednesday.
Investors priced in around 90 basis points (bps) of European Central Bank (ECB) rate cuts in 2024, in line with the levels seen late on Thursday.
Germany's 10-year bond yield, the benchmark for the bloc, was last up 6 bps at 2.35 percent.
Italy's 10-year bond yield was up 10 bps at 3.77 percent, with the closely watched gap to Germany's 10-year yield at 139 bps.
Germany's two-year bond yield, which is more sensitive to ECB rate expectations, was last 1 bps higher at 2.83 percent.