Inflation Concerns and Safe-Haven Demand Tug-of-War, Eurozone Yields Edge Higher

Odaily According to reports, as escalating conflicts in the Middle East caused oil prices to surge and sparked inflation concerns, eurozone government bond yields rose alongside U.S. Treasury yields. However, the increase in yields was capped as military strikes by the U.S. and Israel on Iran also fueled demand for safe-haven assets. Rainer Guntermann of Commerzbank stated in a report: "So far, the market's reaction to the escalation in the Middle East has been relatively orderly." He also noted that risk aversion sentiment may intensify, while the impact of soaring oil prices on German government bonds should be limited. Tradeweb data shows that the yield on the 10-year German government bond rose by 1.5 basis points to 2.665%. The yield on the 10-year U.S. Treasury note increased by 1 basis point to 3.970%. (Jin10)