Euro zone bonds slip from multi-month highs before US inflation data

Euro zone bond prices fell slightly ahead of the release of the Federal Reserve's preferred measure of inflation. Germany's 10-year bond yield rose 2 basis points to 1.973%. Italy's 10-year bond yield increased by 2 bps to 3.598%. The benchmark German 10-year yield is on track for its largest two-month fall since 2008. Investors are pricing in around 150 bps of cuts from the European Central Bank and Fed next year. The November US personal consumption expenditure index is expected to show a year-on-year rise of 2.8%.