Treasury and European government bond yields fell in European morning trade as focus shifted to the European Central Bank’s meeting.
The moves came after the Federal Reserve signaled a pause in rate hikes, sending U.S. Treasury yields lower and weighing on eurozone sovereign debt. Investors are now looking ahead to the ECB gathering for clues on future monetary policy.
Market participants expect the ECB to keep rates unchanged but remain cautious on inflation and growth. The yield declines reflect growing demand for safe-haven assets and bets that major central banks may be nearing the end of their tightening cycles.
Analysts say the divergence between Fed and ECB policy paths could keep bond markets volatile. With the ECB meeting in focus, traders will watch for guidance on deposit facility rates and forward guidance.
Source: Wall Street Journal Markets
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing