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tmsnrt.rs/2ii2Bqr tmsnrt.rs/2ii2Bqr tmsnrt.rs/2ii2Bqr tmsnrt.rs/2ii2Bqr tmsnrt (Adds PMI, ECB, and issuance) (Updates prices, lede, and issuance) (Reuters) – LONDON, July 1 (Reuters) – On Thursday, euro zone government bond yields rose marginally, while European equities rose as risk appetite improved. However, the move lacked a clear rationale, and analysts said investors were waiting for Friday’s jobs data to provide clarification. In the prior session, yields decreased, which some analysts ascribed to month-end flows. On Thursday, they reversed this trend, with the German 10-year Bund yield rising two basis points to -0.183 percent at 0944 GMT. The 10-year yields in France, Spain, and Italy all rose by less than one basis point. 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. Market investors are also keeping an eye on the spread of COVID-19’s Delta variant and its potential economic impact. 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. According to a poll released on Thursday, euro zone industrial activity grew at its highest pace on record in June, with firms facing the biggest jump in raw material costs in more than two decades. However, figures released on Wednesday indicated that euro zone inflation fell in June, as expected. After falling from a three-week high on Wednesday, a measure of long-term inflation expectations, the five-year, five-year inflation forward, dipped to 1.5766 percent. According to an ECB spokesperson, the ECB has scheduled “many meetings” of its policymakers in the coming weeks to iron out disputes over the ECB’s new inflation strategy. France sold roughly 11 billion euros ($13.04 billion) in longer-dated paper, while Spain sold 5.3 billion euros ($6.28 billion) in 5, 7, and 30-year debt. (1 dollar = 0.8437 euros) (Elizabeth Howcroft contributed reporting; Emelia Sithole-Matarise and William Maclean edited the piece.)/nRead More

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