Inflation concerns and safe-haven demand tug of war, Eurozone yields modestly rise

Odaily Planet Daily reports that as the conflict in the Middle East escalates, causing oil prices to surge and raising inflation concerns, both Eurozone government bond yields and U.S. Treasury yields have risen. However, due to the U.S. and Israel’s military strikes on Iran also boosting demand for safe-haven assets, the increase in yields has been limited. Rainer Guntermann of Deutsche Bank stated in a report, “So far, the market’s response to the escalation in the Middle East has been relatively orderly.” He also noted that risk aversion sentiment may intensify, but the impact of soaring oil prices on German government bonds should be limited. Data from Tradeweb shows that the 10-year German government bond yield rose by 1.5 basis points to 2.665%. The 10-year U.S. Treasury yield increased by 1 basis point to 3.970%. (Jin10)