European Government Bond Yields Drop on Early Signs of Inflation Slowing

European Government Bond Yields Drop on Early Signs of Inflation Slowing

European government bond yields dropped, after data releases showed inflation easing in Spain and a German state. The yield on Germany’s 10-year bond fell to 1.898% from 1.995% the day before. Debt issued by southern European governments rallied the most, with the equivalent Italian yield sliding to 3.792%. Inflation in Spain eased in November, with increases in the EU-harmonized index of consumer prices slowing to 6.6% year-on-year from 7.3% the month before. It was also lower than economists'