Eurozone bond yields rebound, inflation data in focus

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LONDON, September 30 (Reuters)Eurozone government bond yields rose on Thursday, resuming their ascent after a brief respite from the previous session, with a day rich in inflation data keeping investors on the lookout.

French inflation hit a nearly 10-year high of 2.7% in September, according to official figures, slightly lower than expected.

German inflation figures are released later in the session, keeping the spotlight on the mounting price pressures that have pissed off global bond markets in recent weeks.

“Inflation looks set to remain in the spotlight. Today, German CPIs should post figures of + 4% and already set the tone for tomorrow’s Eurozone HICP for which consensus seeks a overall rate of 3.3%, “said Michael Leister, director of interest rate strategy at Commerzbank.

“As a result, fears of the ECB’s exit should continue to linger and breakeven points continue to test highs,” he added, referring to breakeven inflation rates, an indicator of expectations. market inflation.

At the start of trading, 10-year bond yields across the currency bloc rose 1-2 basis points on the day.

The yield on the benchmark German 10-year Bund rose by around 2 basis points to -0.20% DE10YT = RJR, not far from the highs of around three months reached earlier this week.

And although moves were relatively modest, eurozone debt markets were expected to end September with the biggest gains in months.

Ten-year Bund yields are up almost 18 basis points this month, their biggest weekly rise since February. French and Dutch rates were set for their biggest monthly hikes since April.

(Reporting by Dhara Ranasinghe; Editing by Emelia Sithole-Matarise)

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