* Euro zone Q1 GDP final data to come later on Tuesday
* German 10-year yield bounces 2 bps ahead of data
* EU to issue 15-year bonds under the SURE program
* Euro zone govt band yield margin tmsnrt.rs/2ii2Bqr
LONDON, March 9 (Reuters) – Euro zone government bond yields fell across the board on Tuesday before data was released that is expected to show the euro zone economy under contract in the first quarter of the year.
The final figures on the euro zone economic output are due to 1000 GMT and the market expects, according to a Reuters poll, that the euro zone economy has traveled 0.6% in the first quarter over fourth quarter of last year and 5% over the same period in 2020.
Euro zone government bond yields, which have hit some of their highest levels in nearly a year recently, fell across the board, a sign of caution before its release.
German 10-year government bond yields fell two basis points to -0.298%, moving further away from the one-year high of -0.203% at the end of February.
Other euro zone bond yields were also down 1 to 3 basis points across the board.,
Analysts do not expect the economic downturn and the fall in output to continue as vaccine programs progress in Europe and the United States, prompting an economic recovery from the COVID-19 crisis.
Strong economic performance tends to reduce demand for “safe” government bonds.
“We read price action yesterday, particularly the strong accumulation and circulation in stocks, as an indication of growing confidence in post-Covid improvement,” analysts at ING said in a note. “Without strong intervention from either the Fed or the ECB, this should result in higher standards.”
The European Central Bank failed to make an emergency buyout last week, losing market expectations and adding to doubts about its commitment to support the European Central Bank. a debt-spread economy.
Later today, the European Union is set to continue its SURE emergency lending programs by issuing 15-year social bonds. Analysts’ expectations for contract size are less than 10 billion euros. (Reporting by Abhinav Ramnarayan, edited by Larry King)