10-year German bund yields are down another 6 bps today to 2.317% as European bonds edge higher after the softer-than-expected French inflation report here. This adds to the softer German inflation report seen yesterday here.
After having to come to terms with a more hawkish ECB last month, the market is seemingly letting the data do the talking now as we see yields come off the boil after pushing higher amid thin trading in the past two weeks.
Of note, 10-year German bund yields are down by roughly 25 bps since the peak at the end of December last week.
The move here is also seeing spillovers with 10-year Treasury yields also dragged lower by over 5 bps today to 3.692% at the moment. That follows a nearly 9 bps drop yesterday from around 3.83% at the open.
