LONDON, Oct 13 (Reuters) - Euro zone government bond yields fell broadly on Thursday after sources familiar with European Central Bank policy discussions told Reuters the ECB may discuss tweaks to its asset-buying scheme at its meeting next week.
The rally also followed minutes from last month’s U.S. Federal Reserve meeting which suggested that while a December rate hike in the world’s largest economy is likely, any further increases will be gradual.
German 10-year bond yields -- the euro zone’s benchmark -- fell 3 basis points to 0.03 percent, pulling back from a one-month high hit on Wednesday.
Most other euro zone yields were down 3-4 basis points on the day.
“It is a combination of a cautious Fed and the ECB discussing some hands on ways to address its QE programme,” Commerzbank strategist Rainer Guntermann said. (Reporting by John Geddie; editing by Patrick Graham)