Euro zone yields steady at multi-month lows as investors await inflation data

Feb 26 (Reuters) - Euro zone government bond yields steadied near multi‑month lows after Nvidia’s results beat expectations, supporting risk appetite, with investors now awaiting inflation data from Germany, France and Spain on Friday.

Stocks bounced in Asia and were about to open broadly unchanged in Europe, but concerns over AI-driven disruption and rising costs remained.

Germany’s 10-year government bond yield DE10YT=RR, the euro area’s benchmark, was flat at 2.71%. It reached 2.697% on Tuesday, its lowest level since November 28 and was around 2.90% early this month.

U.S. Treasury yields rose on Thursday, with benchmark 10-year US10YT=RR up 1.5 basis points (bps) at 4.32% in early London trade, after edging lower the day before, as risk appetite perked up.

Germany’s 2-year yields DE2YT=RR, more sensitive to expectations for policy rates, were down one bp at 2.05%.

Money markets kept pricing in an around 30% chance of a European Central Bank rate cut by December. EURESTECBM7X8=ICAP

Italy’s 10-year government bond yields IT10YT=RR fell 0.5 bps to 3.32%. The gap versus Bunds was at 59.50 bps, after falling to 53.50 bps in mid-January, its lowest level since August 2008.