Most European government bonds showed little change, with long-term debt posting slight gains, supported by safe-haven demand. UK gilts fell as unexpectedly strong UK economic data weakened market bets on interest rate cuts this year. The yield on the 10-year German government bond was essentially flat at 2.82%, while the 30-year bond yield fell by 2 basis points to 3.40%. The yield on the 2-year UK gilt rose by 4 basis points to 3.66%, and the 10-year gilt yield similarly increased by 4 basis points to 4.38%. A rebound in November economic growth data prompted traders to bet that the Bank of England would cut rates by 43 basis points this year, lower than the 48 basis points anticipated before the data release. Market Data: The German government bond yield was largely unchanged, reported at 2.82%; German bond futures rose by 4 ticks to 128; The Italian 10-year government bond yield was mostly steady at 3.45%; The Italy-Germany government bond yield spread narrowed by 1 basis point to 63 basis points; The French 10-year government bond yield showed little movement at 3.49%; The UK 10-year government bond yield increased by 4 basis points to 4.38%.
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