Euro zone bonds yields resume slide as markets price in more rate cuts

LONDON, Dec 27 (Reuters) – Euro zone government bond yields fell to multi-month lows on Wednesday as investors returned from the holiday break and upped bets that interest rates will fall sharply next year. Germany’s 10-year yield, the benchmark for the euro zone, was down 4 basis points (bps) at 1.931%. The yield, which moves inversely to the price, fell to its lowest since March earlier in the session at 1.931%. Italy’s 10-year bond yield was last 4 bps lower at 3.507%, after falling to 3.49%, the lowest since August 2022. “What dominates right now in the market is obviously that disinflation is underway and the fact that the market is pricing more cuts,” said Emmanouil Karimalis, macro rates strategist…