Eurozone Bond Yields Poised for Weekly Decline Amid ECB Rate Hike Bets

The Eurozone's benchmark Bund yields are on track for their first weekly decline since early August. This comes as traders slightly scale back their bets on European Central Bank (ECB) rate hikes, despite pricing a deposit rate at around 3.5% in late 2027.

Germany's 10-year bond yield was up 0.5 basis points at 3.49%, but is expected to drop by 2 basis points this week. The benchmark 10-year US Treasury yield remained steady at 4.94%, after dropping 6 basis points on Thursday.

Analysts argue that comments from Federal Reserve Chair Kevin Warsh reassured investors of the central bank's commitment to bringing inflation under control, helping to avert another selloff in the long end of the Treasury curve.