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Euro zone bond yields, euro fall after French PMIs disappoint - REUTERS

JUNE 23, 2022

June 23 (Reuters) - Euro zone bond yields tumbled on Thursday after data showed French business activity slowed much more than expected in June, adding to global growth concerns.

As inflation and disruptions to supplies of goods weighed, S&P Global's flash services purchasing managers' index (PMI) for France in June stood at 54.4 points, down from 58.3 in May and far below a forecast of 57.6. The manufacturing PMI fell to 51 points from 54.6 and below a forecast of 54.

Following the data, Germany's 10-year bond yield, the benchmark for the euro area, was down 7 basis points to 1.55% by 0723 GMT, its lowest in 1-1/2 weeks.

Italy's 10-year bond yield was down similarly to 3.57% , tightening the closely-watched spread over German bonds to 201 basis points.

The euro gave up earlier gains and turned lower on the day, and was last down 0.36% at $1.0528.

Data for Germany is due at 0730 GMT, followed by euro zone data at 0800 GMT. (Reporting by Yoruk Bahceli, additional reporting by Saikat Chatterjee; editing by Dhara Ranasinghe)


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