LONDON, Jan 4 (Reuters) - German government bond yields rose further on Friday after data showed euro zone inflation slowed in December by more than markets had forecast, but core indicators remained stable.
Prices in the 19-country currency bloc rose 1.6 percent in December on the year, slowing from 1.9 percent in November, data showed. But the core indicator — which excludes volatile energy and food prices and is watched closely by the ECB — was stable at 1.1 percent in December, and in line with market expectations.
It was this core measure that bond markets appeared to react to, with yields across the bloc rising. German 10-year yields hit a session high at 0.189 percent, up more than 3 basis points on the day. (Reporting by Dhara Ranasinghe)