US Inflation Decline Sends Euro Zone Bond Yields Lower

The Euro zone bond yields declined on Wednesday following the release of US inflation data for July. The annualized rate of inflation in the US stood at 3.4%, a decrease from 3.5% in June and in line with economist forecasts.

The core inflation, which excludes food and energy prices, also decreased slightly on an annual basis last month. As a result, US Treasury yields moved lower following the inflation report.

Brent crude oil remained stable at $88.90 per barrel, while investors and analysts indicated that the Federal Reserve's Federal Open Market Committee will likely examine August inflation data carefully before making its next interest rate decision in September.