Euro zone inflation falls below target to 1.9%

LONG-DATED EURO zone government bond yields fell on Tuesday, as slowing euro zone inflation buoyed expectations for a European Central Bank rate cut this week, while a strong Japanese auction earlier lifted sentiment across big bond markets.

- MARK SCHROERS

German 10-year bond yields were last down 2 bps to 2.503%, having earlier hit their lowest level since May 8.

Elsewhere, Italian 10-year bond yields fell to three-month lows at around 3.49%, as did French yields, which fell as low as 3.15%.