0754 GMT – A break of the 10-year German Bund yield below 2.75%, the peak reached in March 2023, would help the long end to further recover towards the 2.50% area, analysts at UniCredit Research say in a note. “This would require tame data in the eurozone, and today’s release of 3Q German GDP and German inflation could be a first test in this respect,” they say. More importantly, the release of eurozone inflation for October, due Tuesday, could provide further tailwind to bonds, albeit investors might prefer to stay on the sidelines until the Federal Open Market Committee meeting on Wednesday, UniCredit Research analysts say. Bond yields fall when prices rise. The 10-year Bund yield is trading around 5 basis points lower at 2.785%, according to Tradeweb. ([email protected])

Eurozone Government Bond Market May Be Showing Signs of Fatigue

0741 GMT – Eurozone government bond yields drop with the 10-year German Bund yield moving further below the 3% mark. “Taken by itself, we think this suggests certain fatigue tendencies of the bond-negative momentum,” says Elmar Voelker, senior fixed income analyst at LBBW. Moreover, the macro side provided price-supporting impetus for the euro bond market, he says, referring to the last set of purchasing managers’ indices. “Hopes of a positive economic turnaround have thus been severely dampened,” he says. Eurozone 10-year bond yields fall by up to 6 basis points, with the 10-year Bund yield down 5bps at 2.783%, according to Tradeweb. ([email protected])