Eurozone yields fall as ECB rate-cut talk grows

London

EUROZONE government bond yields fell across the board on Tuesday, on growing expectations that the European Central Bank (ECB) will cut its deposit rate next month just as the US Federal Reserve looks likely to hike rates.

A consensus is forming at the ECB to take the interest rate it charges banks to park money deeper into negative territory by more than the 10 basis points that markets currently expect, Reuters reported on Monday.