April 2 (Reuters) - Euro zone government bond yields
rose on Tuesday, playing catch-up with U.S. Treasury moves on
Monday when economic data raised doubts about whether the
Federal Reserve could deliver three interest rate cuts this
year.
Euro area markets, which opened after a holiday, await
inflation figures from Germany later in the session and from the
euro area on Wednesday.
Investors priced in around 90 basis points (bps) of European
Central Bank (ECB) rate cuts in 2024, in
line with the levels seen late on Thursday.
Germany's 10-year bond yield, the benchmark for
the bloc, was last up 6 bps at 2.35%.
Italy's 10-year bond yield was up 10 bps at 3.77%
, with the closely watched gap to Germany's 10-year
yield at 139 bps.
Germany's two-year bond yield, which is more
sensitive to ECB rate expectations, was last 1 bps higher at
2.83%.