Eurozone Bond Yields Steady Ahead of ECB Meeting

Eurozone government bond yields showed little movement in early trading on February 2, as markets remained calm ahead of the European Central Bank's policy meeting scheduled for Thursday. According to Jin10, the market anticipates that interest rates will remain unchanged this week, with limited scope for further rate cuts in the current cycle. Rainer Guntermann from Commerzbank Research noted in a report that despite the ECB's recent dovish statements, significant unexpected data or a strong euro would be necessary to prompt a short-term rate cut by the ECB. Following a busy issuance period in January, February's supply is expected to slow, with no eurozone bond supply on Monday. Data from LSEG indicates that the yield on 10-year German government bonds slightly decreased by 0.2 basis points to 2.841%.