Euro zone sovereign bond yields approach 8-month low ahead of US data

U.S. payroll data released on Friday ended a bond rally and a sharp repricing of expectations for future policy rates, which led money markets to discount up to 150 basis points of European Central Bank rate cuts in 2024. Money markets are pricing 135 basis points of rate cuts from the European Central Bank (ECB) in 2024, down from around 150 bps on Dec. 6. The Federal Reserve decision on rates is due late on Wednesday, while the European Central Bank and the Bank of England will meet on Thursday.