By Stefano Rebaudo
MILAN, April 23 (Reuters) - Euro zone bond government bond yields were broadly unchanged on Friday after ECB President Christine Lagarde stressed that any discussion about phasing out the emergency bond-buying programme was premature.
Some analysts continue to see a monetary policy tightening in June following a firm rebound in the European economy as pandemic restrictions are lifted.
The European Central Bank left policy unchanged at its policy meeting on Thursday, keeping copious stimulus flowing even as it predicted a recovery in the eurozone economy in coming months.
ECB's "hawks" did not repeat their public calls for reducing the pace of money printing, sources told Reuters.
Germany's 10-year government bond yield DE10YT=RR, the benchmark of the euro area, was flat at -0.25%.
"The meeting served as more of a placeholder ahead of the June decision when the Governing Council will decide whether to maintain the new faster pace of PEPP (Pandemic Emergency Purchase Programme) purchases. President Lagarde didn't provide any clues on that decision either," Deutsche Bank economists said.
Markets would focus on euro zone PMI data due on Friday, which could add weight to an economic recovery macro scenario.
"Our economists expect a new record reading for the euro area manufacturing PMI and the services PMI to move back to 50," Commerzbank analysts told clients.
"This data and second thoughts about the ECB pace after summer could thus limit the downside in Bund yields ahead of the weekend," they added.
Italy's 10-year government bond yield IT10YT=RR was flat at 0.76%.
"In addition to a peaceful ECB meeting, this week has renewed our conviction that peripheral spreads are due for another leg of tightening," ING analysts said, mentioning the German court ruling on the EU recovery fund.
Germany's constitutional court declined on Wednesday to block the recovery fund, but it did not indicate when it would rule on the full complaint against the fund.
(Reporting by Stefano Rebaudo, editing by Nick Macfie)
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