Eurozone Inflation Expectations Rise, US Treasury Yields Fall Amid Cautious Central Bank Tone

Eurozone short-term inflation expectations have risen, while expectations for rate hikes from the European Central Bank (ECB) and the Federal Reserve (Fed) remained stable, as officials maintained a cautious, mildly hawkish stance without endorsing an October rate move. Eurozone sovereign yields were mixed, with German yields rising and peripheral spreads narrowing. US Treasury yields fell, particularly at the long end of the curve, while the dollar depreciated slightly and the euro strengthened.