Euro zone yields were on track to end the week higher, with markets pricing less than 90 basis points (bps) of European Central Bank (ECB) rate cuts by year-end after data showed a slower decline in the euro area’s underlying price pressures. In Germany, services price growth remained quick in February, while Spain saw uncomfortable readings that could point to a rebound in overall price growth. The annual increase in U.S. inflation was the smallest in nearly three years in January, supporting expectations that the Federal Reserve will start cutting interest rates in June.
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