Hauke Siemssen, an interest rate strategist from Deutsche Bank Research, stated that the trading volume in the European Bonds market remains high due to "sticky" inflation, a constantly evolving supply wave, and resilient data from the USA.

Siemssen mentioned: "Given that the primary market remains busy, and the forthcoming USA ADP and initial jobless claims data today seem unlikely to disappoint, the European bond market appears difficult to ease today."

Germany will auction new government bonds maturing in February 2035 at a price of €5 billion, while Italy will issue new BTPs maturing in August 2035 and new green BTPs maturing in April 2046. Deutsche Bank Research expects the combined issuance size from Italy to be €15 billion.

The yield on 10-year eurozone bonds slightly increased on Tuesday.

According to Tradeweb, the yield on 10-year German government bonds fell by about 1 basis point to 2.473%.