- 🇩🇪 10-year German bund yields down 7.8 bps to 2.195% (two-week lows)
- 🇫🇷 10-year French bond yields down 8.0 bps to 2.680%
- 🇮🇹 10-year Italian bond yields down 7.6 bps to 3.728%
- 🇪🇸 10-year Spanish bond yields down 7.7 bps to 3.101% (near three-week lows)
Well, the French inflation data earlier here reaffirmed the declining trend since last year. And the German inflation data later today is likely to paint a similar picture as well. All of this just rebuffs the narrative of sooner rather than later rate cuts by the ECB, especially since the euro area economy is continuing to struggle to start the new year.
EUR/USD is still trading down 0.2% to 1.0820 with the low earlier touching 1.0806 on the day. The technical picture shows that bids at the 1.0800 mark are still keeping buyers in the game. For today, there is also the Fed factor to consider and also the US ADP employment data release still to come.