LONDON, April 18 ― Euro zone bond yields fell slightly today as European Central Bank policymakers lined up behind a rate cut in June and as the recent surge in oil prices showed signs of running out of steam.

Germany's 10-year bond yield, the benchmark for the euro zone, fell 3.4 basis points to 2.44 per cent. Yields move inversely to prices.

The German 10-year yield slipped 1.5 basis points yesterday, but was still hovering near its highest level since late February, which it hit on Tuesday.

Italy's 10-year bond yield was lower by 6.4 basis points at 3.82 per cent, and the gap between Italian and German bunds narrowed 2.4 basis points to 137 bps.

The spread between US 10-year Treasuries and German Bunds widened 0.7 basis points to 213 bps.

Germany's two-year bond yield, which is more sensitive to ECB rate expectations, was down 2.3 bps at 2.93 per cent. ― Reuters