Costs of borrowing for eurozone governments fall ahead of Thursday's ECB meeting

Bank is widely expected to leave interest rates at the current record high of 4%

European Central Bank president Christine Lagarde: Her comments after Thursday's meeting will be scrutinised.

The costs for governments across the eurozone edged lower at the beginning of the week, as investors looked towards the European Central Bank's -url=https://www.irishexaminer.com/maintopics/interest-rates_topic-84884.html] interest rate[/url] decision on Thursday. 

The interest rate for Ireland to borrow money for 10 years fell to 2.8% as Germany's 10-year bond eased to 2.4%. The yield on Italy's equivalent bond also fell, to 3.8%.

The ECB is widely expected to leave interest rates at the current record high of 4%. 

But investors will listen for any hints from ECB president Christine Lagarde on when borrowing costs might start to fall and look for clues in updated economic projections.

The detective work will continue on Friday, when the US releases jobs data for February, which will be scrutinised for indications about inflation and the potential path of US Federal Reserve rates. 

Investors will be inundated with news in the interim. China's National People's Congress, where officials are set to announce the economy's growth target for the year, will begin on Tuesday.

Super Tuesday, the biggest day in the US presidential primary calendar, is likely to see Donald Trump cement his hold on the Republican nomination. 

British chancellor Jeremey Hunt will on Wednesday lay out the UK government's spending and taxation plans, while seeking to avoid the ire of bond markets, and Fed chair Jerome Powell will begin his semi-annual two-day testimony before Congress.

Eurozone yields have risen this year as traders tempered expectations for big and fast rate cuts as economies and inflation proved stronger than expected. 

"We are not expecting any change from the ECB this week, but the market will look for any hints over the possibility of an April cut," said Mohit Kumar, chief Europe economist at Jefferies, in a research note.

"We remain in the June rate cut camp both from the Fed and the ECB. Similarly, from Powell, we expect a push back on early rate cuts with the tone being that it's too early to declare victory over inflation." 

• Reuters and Irish Examiner