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Bond yields steady as investors eye Austria 100-year sale, Ifo survey

* Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr

AMSTERDAM, June 24 (Reuters) - Euro zone bond yields were broadly steady on Wednesday, as market mood continued to support riskier assets ahead of a 100-year bond sale from Austria and business sentiment data from Germany.

Austria started the sale of a 100-year bond via a syndicate of banks, which will raise 2 billion euros in one of the longest-dated bond sales since the coronavirus crisis.

Germany will also visit the primary market with the first reopening of a 15-year bond via auction, which is expected to raise 2.5 billion euros.

Focus will also be on Germany’s Ifo business climate survey due at 0800 GMT. The reading is expected to improve to 85, from 79.5 last month.

That comes after business activity indexes on Tuesday surprised to the upside, supporting hopes for a V-shaped recovery and boosting risk appetite across markets, which led safe-haven yields such as Germany’s to rise.

Germany’s 10-year bond yield was up 1 basis point at -0.40% after briefly rising to its highest in nearly two weeks at around -0.39%. Italian 10-year yields were down 1 basis point to 1.33%

There is no denying that sentiment is improving and that the ‘V-shaped recovery’ narrative is so far helping markets ignore the steep COVID infection curve in the Americas and elsewhere,” ING analysts told clients.

“We think the surprise is out of sentiment indicators today so it would take more than a beat in the IFO to cause another rise in yields.”

An industrial business confidence index from France, released ahead of Germany’s Ifo on Wednesday, disappointed against expectations by a Reuters poll.

French president Emmanuel Macron and Dutch Prime Minister Mark Rutte were able to move forward during talks to resolve differences over the European Union recovery fund, a French presidential official said on Wednesday.

The Netherlands leads a coalition of fiscally conservative Northern European countries that would prefer the 750 billion euro fund to be offered as loans, rather than grants. (Reporting by Yoruk Bahceli; Editing by Alex Richardson)

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