(Adds reaction to U.S. data, ECB context) Sept 11 (Reuters) - European government bond yields dipped and the euro nudged higher on Thursday after the European Central Bank held rates steady at 2%, in a decision that was followed shortly by the latest U.S. inflation numbers. The ECB has halved its key rate to 2% in the year to June but has been on hold since, arguing that the 20-country euro zone economy is in a "good place", even if more easing cannot be ruled out. Thursday's decision was in line with expectations and the ECB offered no real clues about its next move. Investors were left trying to find excitement in tweaks to its forecast which now see inflation at 1.9% in 2027, below the 2.0% projected in June. Data meanwhile showed U.S. consumer prices rose more than expected in August, though not by enough to prevent a much-anticipated rate cut from the Federal Reserve next week. The euro dipped slightly on the dollar on the ECB decision, but then reversed course after the U.S. data to last trade slightly higher at $1.1713 . Germany's 10-year bond yield, the benchmark for the euro zone, was last at 2.64% a touch lower than before the decision and data. Market focus turned to ECB President Christine Lagarde's post-meeting news conference. "Things that can move a little bit more is probably anything related to Bunds and if the market senses that the council or Lagarde are ready to take the French situation into consideration in monetary policy decisions," said ING currency strategist Francesco Pesole said, referring to political uncertainty in France. "But I think it’s still not highly likely that she will give anything away." Europe's broad STOXX 600 share index was last up 0.25% paring gains marginally from earlier in the day <.STOXX>. (Reporting by Stefano Rebaudo, Alun John and Lucy Raitano; Editing by Susan Fenton and Dhara Ranasinghe) ((stefano.rebaudo@tr.com)) Keywords: EUROZONE BONDS/ (UPDATE 3)
Euro zone bond yields dip after ECB decision, U.S. data, euro tad higher
12 Sep 2025Category: Global Markets