Euro zone bond yields opened steady on Monday as investors prepared for a busy week with major global developments. Market liquidity remains thin ahead of important meetings and deadlines.
US President Donald Trump and Russian President Vladimir Putin are scheduled to meet on Friday in Alaska. This summit aims to discuss peace efforts for Ukraine, marking the first face-to-face meeting between the two leaders since 2021.
At the same time, a 90-day truce in the US-China trade war is set to expire on Tuesday. Traders widely expect this pause to be extended for another 90 days, easing tensions in global trade.
German 10-year bond yields remained almost unchanged from last Friday’s close at 2.684 percent. Yields on Bunds, the benchmark for euro zone debt, have shown little movement so far this month.
With no major economic data expected from the euro zone this week, investor focus shifts to US consumer inflation figures for July, due on Tuesday. A softer inflation report could boost expectations for a Federal Reserve rate cut next month.
Meanwhile, euro zone bond supply will be limited this week, with only a few re-openings of German and Finnish government bonds. Italy canceled auctions for several debt maturities, and Portugal has also paused its issuances. This reduced supply has kept yields stable across the region.