AMSTERDAM, Dec 16 Reuters Euro zone bond yields rose in early trade on Wednesday as data pointed to betterthanexpected business activity in the bloc this month.
Germanys private sector showed resilience in December as manufacturing picked up steam and the services sector showed a surprise partial recovery ahead of a stricter lockdown, Markits preliminary purchasing managers index indicated.
French business activity unexpectedly also almost returned to growth this month as some coronavirus restrictions were eased and the manufacturing sector saw a minor rebound.
Euro zone figures are due at 0900 GMT, with a Reuters poll expecting a small improvement in the overall figure spanning services and manufacturing, although manufacturing growth is expected to slow slightly.
Resilient data will be cold comfort though, with hard lockdowns taking effect, Commerzbank rates strategist Rainer Guntermann told clients.
Headlines suggesting progress on a Brexit deal were likely to be modestly supporting borrowing costs.
Germanys 10year bond yield was up as much as 2 basis points to 0.589 in early trade, its highest in nearly a week. French 10year yields rose similarly.
Italys 10year bond yield was unchanged at 0.49, after hitting a record low at 0.48 on Tuesday.
In the primary market, Italy will conduct a buyback of five bonds due in 2021.
Later in the session investors will also focus on the outcome of the U.S. Federal Reserve meeting.
Reporting by Yoruk Bahceli; Editing by…