Bond Yields Steady as Fed, BOE Decisions Loom

Ahead of key central bank meetings, European and U.S. government bond yields remained steady, with investors closely watching the U.S. Federal Reserve and the Bank of England. The Fed is expected to keep rates unchanged, while the Bank of England is now anticipated to cut rates in response to economic concerns. In the Eurozone, April inflation was reported at 2.2% with core inflation at 2.7%, slightly above forecasts, reinforcing expectations for about 60 basis points of ECB rate cuts by the end of the year. Despite easing trade tensions and falling oil prices, strong U.S. economic data has tempered immediate hopes for rate cuts, keeping yields close to recent highs. German Bund yields stayed above 2.5% and U.S. 10-year Treasury yields hovered around 4.31% as markets consolidated. Statements from central bankers and upcoming data releases are expected to guide market sentiment in the coming weeks.