Euro zone bond yields hold steady before inflation data
LONDON, Oct 1 (Reuters) -Euro zone bond yields held steady on Tuesday before the release of September inflation data for the single-currency bloc, which is expected to show price growth cooled further this month.
Data on Monday showed that German inflation cooled more than anticipated in September to 1.8% month-on-month, boosting expectations that the euro zone-wide figure will fall below the European Central Bank's 2% target. The euro zone data will be released at 0900 GMT (1100 CET).
Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, fell 1.5 basis points (bps) to 2.12%. Yields move inversely to prices.
Italy's 10-year yield IT10YT=RR was lower by 1.8 bps at 3.44%, and the gap between Italian and German yields DE10IT10=RR stood at 132 bps.
Germany's two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, was little changed at 2.07%.
It fell to its lowest since December 2022 on Monday at 2.046% as money markets moved to price in an 80% chance of another ECB rate cut in October.
Reporting by Harry Robertson; Editing by Andrew Heavens
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