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Staff of Reuters 3 minutes Read about the yields on government bonds in the Eurozone’s periphery. tmsnrt.rs/2ii2Bqr (Reuters) – LONDON, July 1 (Reuters) – On Thursday, euro zone government bond yields began the month marginally higher, while European stocks rose in early trade as risk appetite increased. The euro area’s final PMI data is due throughout the morning, but analysts think it is unlikely to move markets, which are more concerned with the potential economic impact of the Delta form of COVID-19’s spread. Virus mutations continue to pose a threat to the euro zone’s economy, according to European Central Bank President Christine Lagarde, who spoke before the European Parliament in her capacity as chair of the European Union’s financial stability authority. However, European stocks climbed in early trading, following a month-end selloff, as investors shrugged off inflation fears. At 0800 GMT, the euro zone final PMI figure will be released, followed by the euro zone unemployment rate at 0900 GMT. At 0718 GMT, Germany’s benchmark 10-year Bund yield was -0.19 percent, up one basis point for the day. The 10-year yields in France, Spain, and Italy all increased by the same amount. Inflation in the euro zone fell in June, as expected, according to statistics released on Wednesday. After falling from a three-week high on Wednesday, a measure of long-term inflation expectations – the five-year, five-year inflation ahead – was at 1.5863 percent. Investors are anticipating two significant U.S. data releases: ISM manufacturing data later today and payrolls data on Friday, following the Fed’s surprise hawkish move at its June meeting. In a letter to clients, ING rates strategists stated, “How markets respond to these numbers could decide the behavior of rates during the summer.” “They should give us a better sense of how seriously markets have taken the Fed’s hawkish warning shot – we’re keeping an eye on the front-end.” Prior to Friday’s figures, data showed that private payrolls in the United States increased more than expected in June. France is planned to issue 11 billion euros ($13 billion) in longer-term debt, while Spain is expected to issue 4.5 billion euros ($5.3 billion) in 4-, 5-, 7-, and 30-year notes. (1 dollar = 0.8445 euros) (Elizabeth Howcroft contributed reporting, and Emelia Sithole-Matarise edited the piece.)/nRead More

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