The European Central Bank will announce its decision and new bond issuance, causing a slight increase in eurozone bond yields.

The yield on Eurozone government bonds edged up in early trading, following an unexpected surge in German manufacturing orders in December and upcoming bond issuances from Spain and France. The main focus on Thursday is the statement from the European Central Bank, with markets widely expecting interest rates to remain unchanged. This will keep the deposit rate in the Eurozone at 2.0%, with data showing relative strength in the economy. According to data from the London Stock Exchange Group, the yield on 10-year German government bonds rose by 0.5 basis points to 2.867%; the yield on 10-year Spanish government bonds rose by 1.1 basis points to 3.242%; and the yield on 10-year French government bonds rose by 1 basis point to 3.458%.