Euro zone bond yields edge lower, sentiment remains fragile
Aug 8 (Reuters) -Euro zone bond yields edged lower on Thursday, as investors sought more clues on the outlook for global monetary policy after days of volatile trading that pushed yields to multi-month lows.
German 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, fell 3.1 basis points to 2.24%, while the two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, fell 1 basis points to 2.36%.
Yields on both rose on Wednesday, with the 10-year yield marking its biggest daily increase in more than five weeks, as an improvement in broader risk appetite prompted investors to sell bonds.
Euro zone government bond yields are, however, not far off Monday's multi-month lows after a weak U.S. jobs report late last week ignited fears of an economic downturn that could warrant bigger rate cuts from the Federal Reserve, which in turn gave the U.S. Treasury market a boost.
Investors will focus on U.S. weekly jobless claims data and speeches from Fed policymakers later on Thursday.
Italy's 10-year yield IT10YT=RR was lower by 1.3 basis points at 3.69%, and the gap between Italian and German bunds DE10IT10=RR widened 2 basis points to 144 bps.
Reporting by Sruthi Shankar in Bengaluru; Editing by Amanda Cooper and Kim Coghill
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