LONDON, Dec 1 Reuters Germanys benchmark 10year bond yield hovered near threeweek lows on Tuesday, while southern European debt yields kept record lows in sight ahead of inflation numbers expected to reinforce the case for more stimulus at next weeks European Central Bank ECB meeting.
Having risen in early November as news of a COVID19 vaccine boosted hopes of recovery next year, government bond yields have drifted back down as global central bank officials have indicated stimulus will remain in place for some time.
Germanys Bund yield, which has held a narrow range in recent days, was a touch lower in early trade at 0.58, close to Mondays threeweek low of 0.60.
Bond markets are likely to remain in waitandsee mode ahead of the ECB and Fed meetings, analysts at UniCredit said in a note, referring to the U.S. Federal Reserve also.
The ECB is scheduled to meet next Thursday while the Federal Reserve meets later this month.
Monthly flash data from European Union EU statistics body Eurostat, due at 1000 GMT, is expected to show that consumer prices in the euro area fell 0.2 yearonyear in November after a 0.3 decline the previous month.
German annual consumer prices fell further in November, pushed down by a VAT cut introduced as part of the governments stimulus push to help Europes largest economy recover from the coronavirus shock, data showed on Monday.
The weak inflation outlook is one reason why the ECB is expected to deliver more stimulus next week.