BAKU, Azerbaijan, June 5. Eurozone government bond yields are poised for their first weekly increase since mid-May, as investors grow cautious over the prospects of a rapid US-Iran deal to reopen the Strait of Hormuz.
TurkicWorld reports that reopening the Strait of Hormuz would relieve energy-driven inflation pressures and reduce expectations of further central bank rate hikes, which would typically push yields lower. Germany’s two-year yields remained largely unchanged at 2.66 percent but are on track for a 12.5 basis point weekly rise, while the 10-year benchmark yield rose slightly to 3.02 percent, signaling a 10-bp weekly increase.
Markets anticipate potential European Central Bank rate hikes in the coming months.
