Germany's 10-Year Bund Yield Stays Steady Amid U.S. Fed Focus

Germany's 10-year government bond yield remained steady on Wednesday after earlier falling to a four-week low, as investor focus shifted to the Federal Reserve's policy outlook. This comes ahead of a delayed U.S. report due later in the day.

Recent days have seen German Bunds closely following U.S. Treasuries, thanks to soft U.S. economic data offering the Fed increased leeway to adjust interest rates downward. "U.S. rates are leading again in global rate markets, and the focus has shifted back to a cooling jobs market," said Michiel Tukker, senior European rates strategist at ING.

The benchmark 10-year bond yield for the eurozone was last recorded down about 0.5 basis points at 2.8%, marking its lowest since January 14. All eyes are on today's delayed U.S. nonfarm payrolls report, expected to indicate increased job growth supported by reduced layoffs in seasonal sectors. However, concerns loom owing to warnings of potential lower job gains in forthcoming months, echoed by White House economic adviser Kevin Hassett, amidst recent underwhelming retail sales figures.