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Euro zone yields fell on Tuesday as data showed inflation in the bloc dropped to its lowest in over two years, with bonds helped too by a rally in Treasuries a day after the U.S. cut near-term government borrowing forecasts. Also in the mix was the Bank of Japan's (BOJ) decision to loosen its grip on long-term interest rates by tweaking its bond yield control policy, another small step towards dismantling its aggressive monetary stimulus of the past decade. The local focus for European bond markets was euro zone data that showed prices rose by just 2.9% in October, the slowest pace since July 2021, as well as separate data that showed the euro zone economy shrank 0.1% in the three months to September.