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LONDON - Euro zone government bond yields fell for a fourth consecutive day on Friday as investors waited for the latest monthly U.S. employment report.
Data this week has suggested the all-important U.S. economy is slowing, with job openings rising and manufacturing weak. But the most important release for markets is the U.S. non-farm payrolls report due at 8.30 a.m. ET (1230 GMT) on Friday, which is expected to show a slight pickup in employment in August.
Germany's 10-year bond yield, the benchmark for the euro zone bloc, fell 2.7 basis points (bps) to 2.18%, its lowest since Aug. 22. Yields move inversely to prices.
Italy's 10-year yield was 2.4 bps lower at 3.55%, and the gap between Italian and German bond yields was almost unchanged at 136 bps.
Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was down 1.9 bps at 2.276%, the lowest since Aug. 5.
(Reporting by Harry Robertson; Editing by Jamie Freed)