Core Viewpoint - Eurozone government bond yields have slightly increased in early trading, influenced by an unexpected rise in German manufacturing orders and upcoming large bond issuances in Spain and France [1] Group 1: Economic Indicators - German manufacturing orders unexpectedly surged in December, contributing to the rise in bond yields [1] - The European Central Bank's policy announcement is a key focus, with the market widely expecting interest rates to remain unchanged [1] - Economic data indicates relative resilience in the Eurozone economy, which supports the maintenance of the deposit rate at 2.0% [1] Group 2: Bond Yield Changes - The 10-year German government bond yield rose by 0.5 basis points to 2.867% [1] - The 10-year Spanish government bond yield increased by 1.1 basis points to 3.242% [1] - The 10-year French government bond yield went up by 1 basis point to 3.458% [1]

Core Viewpoint - The yield spread between peripheral Eurozone countries' bonds and German bonds has narrowed, reaching historic lows for Italy and Spain since 2008 [1] Group 1: Yield Spread Data - The yield spread of 10-year Italian BTPs against German bonds dropped to as low as 59 basis points [1] - The yield spread of 10-year Spanish bonds against German bonds decreased to 39 basis points [1] Group 2: Market Outlook - Jefferies' economist Mohit Kumar expresses optimism regarding the performance of Italy and Spain relative to Germany [1] - The favorable environment for spread trading is expected to dominate the credit bond and peripheral country markets in the coming months [1] - Jefferies maintains a bullish position on government bonds from peripheral Eurozone countries and anticipates the yield spread between Italian and German 10-year bonds to converge towards 50 basis points [1]

Core Viewpoint - European bond yields experienced a decline on May 26, with notable decreases in France, Italy, Spain, and Greece, indicating a potential shift in investor sentiment towards safer assets [1] Group 1: France - The yield on French 10-year government bonds fell by 2.2 basis points to 3.240%, with a trading range of 3.296% to 3.235% during the day [1] Group 2: Italy - Italian 10-year government bond yields decreased by 2.9 basis points to 3.556%, with a trading range of 3.624% to 3.551% [1] Group 3: Spain - Spanish 10-year government bond yields dropped by 1.4 basis points to 3.179% [1] Group 4: Greece - Greek 10-year government bond yields fell by 2.2 basis points to 3.298% [1]