Eurozone yields slip as markets increase bets on Fed rate cut

Money markets fully priced 25 basis points of rate cut from the US central bank and a nearly 60% chance of a 50 bps move, from around 50% late last week, according to the CME FedWatch tool

Investors will focus on remarks by Fed chair Jerome Powell, no matter what the Fed decides on rates. Photographer: David Paul Morris/Bloomberg

Eurozone government bond yields slipped on Monday as money markets increased their bets on a super-sized 50 basis point rate cut by the Federal Reserve this week.

The Bank of England and the Bank of Japan will also hold their policy meetings later this week and are expected to keep rates at the current levels.