German 2-Year Yield Falls 6.5 Bps to Lowest Since May 8 on Iran Deal Hopes

GateNews
According to Jin10, on May 25, eurozone government bond yields declined as markets renewed hopes for a U.S.-Iran agreement to reopen the Strait of Hormuz, easing inflation concerns and reducing expectations for aggressive central bank rate hikes. German 2-year yields dropped 6.5 basis points to 2.5758%, the lowest level since May 8. Money markets now price the European Central Bank's December deposit rate at 2.57%, down from 2.65% expected late on Friday. The probability of a rate hike next month fell to 70% from 80% previously.
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