Eurozone benchmark bond yields were on track for their first weekly decline since early August on Friday, as investors scaled back expectations for further European Central Bank interest-rate increases following a sharp rise in global borrowing costs.
Money markets were pricing the ECB's deposit rate at around 2.86% by December, compared with the current 2.50%, implying almost a 50% probability of a second rate hike before the end of the year. By November 2027, the expected rate had eased to 3.39% from 3.55% on Monday.
