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Euro zone bond yields rise as data muddies rate outlook

Euro zone government bond yields rose on Wednesday as markets digested data that showed business activity has been a lot stronger than expected this month, which might take some pressure off the European Central Bank to cut interest rates beyond June. The ECB has all but promised a rate cut in June, but its policymakers are still debating what happens after that. Bundesbank President Joachim Nagel, a key ECB policymaker, on Wednesday said euro zone inflation could prove stubborn and a rate cut in June might not necessarily be followed by more cuts.