LONDON, Sept. 8 (Reuters) - Euro zone bond yields steadied around multi-year highs on Tuesday as investors processed a variety of competing narratives from elevated energy prices to German political uncertainty and volatility in Japan, all ahead of this week's ECB meeting.
Germany's 10-year bond yield, the benchmark for the euro zone, was little changed in early trading at 3.38%, a whisker off last week's 15-year high. DE10YT=RR
The major event for euro zone bonds this week is Thursday's European Central Bank meeting. The ECB is widely expected to raise rates, with the key question for investors being whether they will give any indications about their future plans.
But there is plenty for investors to process before that, including a relentless climb in energy prices, with Brent crude LCOc1 closing in on $100 a barrel and Dutch benchmark wholesale gas prices TFMBMc1 around their highest since late 2022. NG/EU O/R
Meanwhile, at the weekend the far-right AfD won a historic victory in a German state election, further adding to political uncertainty in the euro zone's largest economy.
Other euro zone yields were largely moving in line with the benchmark. France's 10-year yield was flat at 4.25%, though sitting near its highest since 2008, while Italy's was down 1 basis point at 4.20%. FR10YT=RR, IT10YT=RR
Shorter-dated yields inched down a fraction, with Germany's 2-year yield down 1 bp at 2.98%. DE2YT=RR
