US President Donald Trump and Russian President Vladimir Putin will meet on Friday in Alaska to try to broker peace in Ukraine. It will be the first in-person meeting between a US and Russian leader since former President Joe Biden met Putin in 2021.
Meanwhile, a 90-day truce in the US-China trade war expires on Tuesday, with traders widely expecting the pause to be extended for another 90 days.
German 10-year yields [DE10YT=RR] were little changed from Friday’s close at 2.684%, after ending last week up 1 basis point. Yields on Bunds, the benchmark for the wider euro zone, have shown minimal movement so far this month.
Read: US-China truce for stable global trade
Two-year yields [DE2YT=RR], which are more sensitive to changes in interest rate expectations, were steady at 1.955%.
With little market-sensitive data due from the euro zone this week, investor focus will be on July US consumer inflation figures due on Tuesday. A softer reading could strengthen expectations for a Federal Reserve rate cut next month.
Commerzbank said euro zone bond supply this week is expected to be the smallest so far this year, limited to a re-opening of German 10-year Bunds and Finnish 10- and 15-year government bonds. Italy has cancelled auctions of 3-year, 7-year and ultralong debt, while Portugal will also refrain from issuing.
Elsewhere, 10-year Italian yields [IT10YT=RR] fell 1 basis point to 3.496%, while French 10-year yields [FR10YT=RR] were unchanged at 3.388%.