Upside Risks to German CPI Data, Euro Zone Bond Yields Higher

Euro zone bond yields edged higher after falling the previous day, with German inflation data in focus today.

Bank analysts said with Germany due to release CPI data for June, attention will continue to be on inflation developments in the euro zone and their related implications for monetary policy.

Modest softness in fixed income markets followed the release of North Rhine-Westphalia inflation data, pointing to a slight upside risk to Germany’s national inflation figures and underscoring the high sensitivity of the issue.

Analysts expect the bond yield curve to flatten if German inflation unexpectedly rises.