Euro zone government bond yields opened steady on Thursday, maintaining the calm seen in recent sessions as German benchmark yields hovered near three-week lows.
The market’s quiet tone reflects a wait-and-see approach ahead of a significant supply event later in the week.
German 10-year yields traded at 3.11% early in the session.
The stability in the benchmark comes after a period of modest selling pressure that had pushed yields higher earlier in the month, only to see them retreat as investors reassessed the near-term policy outlook.
The primary focus for traders is the upcoming French bond auction, which is expected to feature a hefty supply of new issuance.
Large sovereign auctions often introduce volatility into the secondary market as dealers position themselves to absorb the new paper.