Euro zone bond yields drop ahead of Fed Powell testimony

Euro zone government bond yields fell on Monday as market focus shifted to the U.S. ahead of Federal Reserve Chair Jerome Powell’s testimony on Tuesday and job data on Friday, Reuters reported.

China set a modest target for growth this year, triggering expectations for a possible adverse impact on the bloc’s economy and reviving some hopes about a potential slowdown in the pace of European Central Bank rate hikes.

Italy’s 10-year bond yield fell as much as 10.5 bps to 4.44%, with the spread between Italian and German 10-year yields tightening to 177 bps.

Germany’s 10-year yield dropped 6 bps to 2.656%.