Euro-area sovereign debt firmed on Thursday, with German benchmarks retreating from a one-week peak, as traders positioned for a European Central Bank decision whose outcome is taken for granted but whose forward guidance is anything but settled. The 10-year Bund yield slipped to 3.355%, pulling back from the near one-week high reached in the prior session. The two-year rate, the maturity most sensitive to ECB policy expectations, eased to 3.068%. The 10-year has shed roughly 30 basis points over the course of October and earlier this week touched its lowest level since late August as buyers sought the currency bloc's safest assets. Policymakers are widely expected to leave the deposit rate at 2.
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