Eurozone Inflation Data Looms, Market Reactions Muted

Yields Mixed After Inflation Data Cools

Euro zone government bond yields rose slightly on Wednesday as investors awaited inflation data from the region.

Data released earlier this week showed that euro zone inflation cooled, moderating to 2.6% in the year to June. This has raised questions about the certainty of the European Central Bank's hawkish policy stance.

Market reactions were muted shortly after the release of the July inflation data. Italy's 10-year yield held steady at 3.714%, while the German 10-year yield rose to -0.04%.