European Bonds Get a Respite From Softer Inflation Expectations
- German, Italian yields headed for biggest drop in over a month
- Markets weighing hawkish ECB comments, inflation survey: RLAM
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Euro-area government bonds rose and traders pared bets on further rate hikes after a European Central Bank survey showed inflation expectations cooled in January.
Yields on German and Italian benchmark bonds were poised for their biggest daily declines since policy makers raised interest rates by a half-point on Feb. 2. An ECB survey showed inflation expectations receded to 2.5% in January, down from 3% in December.