* Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr (Adds analyst comment, updates prices)MILAN, June 4 (Reuters) - Euro zone government bond yields steadied on Friday ahead of the U.S. May employment report, which might give clues about when Federal Reserve’s bond-buying tapering discussions would start.
Thursday’s ADP National Employment Report showing private payrolls increased by 978,000 jobs last month, the biggest increase since June 2020, triggered a rise in Treasury yields in light trading overnight.
“A succession of strong sentiment surveys in the U.S. this week has revived fears of, still distant, Federal Reserve tightening,” ING analysts said.
According to a Reuters survey of economists, private payrolls likely increased by 600,000 jobs last month after rising by only 218,000 in April.
Still, they expect the credit rating agency “to focus mainly on economic prospects in the short and medium-term, as these will be key for a credible fiscal strategy.”Italy’s 10-year government bond yield fell by 0.5 basis point to 0.89%.
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