Euro zone yields rise, gap between German and US borrowing costs smallest in a month

Indian government bonds gained for a second straight session as softer US inflation data lifted US Treasuries and eased pressure on emerging market debt, with state-run lenders and foreign investors actively buying. Separately, the gap between German and US 10-year borrowing costs narrowed to around 144 basis points, the smallest since early June, as markets priced in a roughly 90% chance of an ECB rate hike at its September meeting after cooler US inflation prints pared bets on imminent Fed hikes.