Euro zone yields around 2-week highs on inflation concerns

Euro zone borrowing costs edged lower on Thursday, with long-dated yields around their 2-week highs on inflation fears and after comments from European Central Bank's policymakers. Investors have adjusted their positioning before next week's ECB meeting, with markets increasing their bets on a 25 basis points (bps) rate hike but still pricing less than a 50% chance. Comments from Bank of France head Francois Villeroy de Galhau "deserve special attention as he has often predicted the consensus view in the governing council," said Hauke Siemssen, rates strategist at Commerzbank.