Euro zone long-dated bond yields set for fourth weekly decline as data weighs on markets

Euro zone long-dated government bond yields are set to fall for the fourth consecutive week, driven by weak economic data and declining inflation expectations. The risk premium for French debt has stabilized amid budget concerns for Prime Minister Michel Barnier's government. Germany's 10-year bond yield remains flat at 2.3%, down 12.5 basis points for the week. Recent data showed German inflation unchanged in November, contrary to expectations. Markets anticipate a European Central Bank rate cut in December. The gap between French and German yields is steady at 80.5 basis points, down from 90 earlier this week. Italy's 10-year bond yield has also decreased, falling 1 basis point to 3.34%, marking a 16.5 basis point drop for the week.