Euro zone bond yields steady, defence spending in focus
Feb 20 (Reuters) - Euro zone government bond yields stabilised on Thursday, after rising for four days, as markets awaited more clarity around the prospects of increased defence spending in Europe.
Traders also assessed minutes from the U.S. Federal Reserve's January policy meeting, published on Wednesday, showing that Fed officials discussed slowing or pausing the ongoing drawdown of its balance sheet holdings. This sent U.S. Treasury yields down.
Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, held steady at 2.55%. On Wednesday the yield touched its highest since January 30 at 2.555%.
Yields move inversely to prices.
Italy's 10-year yield IT10YT=RR was unchanged at 3.636%, and the gap between Italian and German yields DE10IT10=RR stood at 107.8 basis points (bps).
Germany's two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, fell 0.5 bps to 2.17%.
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