

Market Analysis
Eurozone yields edged lower on Monday during a week filled with significant economic events, including euro area inflation data and policy meetings by the Federal Reserve, the Bank of England, and the Bank of Japan.
Germany's 10-year government bond yield, the euro area's benchmark, fell by 0.5 basis points (bps) to 2.40%.
Money markets fully priced in two European Central Bank 25-bp rate cuts and a 10% probability of an additional cut by year-end, consistent with levels seen late Friday.
Italy's 10-year yield decreased by one bp to 3.75%.
The yield gap between Italian and German 10-year bonds—a measure of the risk premium investors require to hold Italian debt—stood at 135 bps.
The spread between French and German government bond yields was at 69.80 bps, close to its post-French vote peak of around 72 bps.
Germany's two-year bond yield, which is more responsive to policy rate expectations, remained unchanged at 2.67%.
Paraphrasing text from "Reuters" all rights reserved by the original author.