March 7 (Reuters) - Euro zone short-dated bond yields
dropped after hitting fresh multi-year highs the day before as
investors await Federal Reserve Chair Jerome Powell's testimony
later in the session.
Powell's speech, due at 1500 GMT, might shape expectations
for U.S. monetary policy ahead of the FOMC meeting on 21-22
March, after Fed officials sent some dovish signals.
Germany's 2-year yield , most sensitive to changes
in policy rates expectations, dropped 6 bps to 3.249%.
At his last press conference, Powell said confidently a
"disinflationary process" had begun, showing a "gratifying"
corner had been turned even as he pledged the central bank's
fight against rising prices was not over.
Atlanta Federal Reserve President Raphael Bostic said last
week the Fed should stick with "steady" quarter-point rate
increases to limit economic risks.
Germany's 10-year yield , the bloc's benchmark,
dropped 7.5 bps to 2.651%.
Italy's 10-year bond yield fell 10 bps to 4.45%.
(Reporting by Stefano Rebaudo, editing by Samuel Indyk)
Messaging: stefano.rebaudo.thomsonreuters.com@reuters.net ));))
