Euro zone bond yields rise amid uncertainty

Euro zone government bond yields experienced fluctuations as investors awaited key economic data and events, including inflation data and the French elections. German 10-year bond yields rose slightly, while the spread between French and German yields reached its highest level since 2017. Market expectations suggest potential European Central Bank rate cuts, influenced by economic developments and political uncertainties in France. The Ifo German business survey indicated a decline in business morale, supporting expectations for interest rate cuts and impacting bond yields. Hopes for monetary easing in Europe were reinforced by actions from central banks, affecting the yield gaps between countries in the euro area.