On Wednesday, consumer price figures for the 12-country euro region will be released. Prices are seen rising 0.2 percent in September, and gaining 2.4 percent in the year, according to economists in a Bloomberg News survey. The pace of inflation in the region fell to 2.7 percent in August. Five months ago the rate was 3.4 percent. The ECB aims to keep inflation below 2 percent, a goal it has missed for 15 months.
Faster inflation hurts bonds by eroding the value of their fixed payments.
The real yield on the German benchmark 10-year bond has increased to 2.09 percent since May, when it was 1.77 percent, the lowest level since the euro's inception in January 1999. Industrial production figures for Italy are due Monday. French industrial output numbers follow Tuesday, and figures for the 12 countries that use the euro will be released on Wednesday. Consumer confidence in the biggest economy unexpectedly rose this month, the University of Michigan confidence index showed today. Still, U.S. retail sales fell 2.4 percent in September, the largest drop in almost 10 years of record-keeping.