Euro Zone Bond

The German 2-year bond yield, most sensitive to expectations for policy rates, rose 1.3 bps to 2.94%, after briefly rising to an almost one-week high

The ECB is widely expected to leave interest rates at the current record high of 4%

Euro zone inflation eased to 2.4% in November from 2.9% in October, data showed last week, prompting bets that the ECB will begin cutting interest rates sooner than previously thought

The U.S. 10-year Treasury yield - which sets the tone for other bond yields around the world - has dropped around 28 bps since surging to a 16-year high of 4.887% last week

Thursday's ECB meeting could mark another tense moment for policymakers caught between record high inflation and the economic hit from the war in Ukraine

Data on Monday confirmed that consumer prices in the euro zone rose 1.3% year-on-year in June