Bund yields drop after German elections, focus shifts to energy prices
German 10-year Bund yields dropped 4.5 basis points to 3.48%, virtually wiping out Friday's rise. The decline tracked a fall in oil prices and showed a muted reaction to election results.
Sept 21 (Reuters) — Euro area benchmark Bund yields dropped on Monday, tracking a decline in oil prices and showing a muted reaction to gains by the far-right Alternative for Germany (AfD) and a far-left party in regional elections at the weekend.
German Chancellor Friedrich Merz vowed to accelerate reforms to move Germany forward after the far-left left won the Berlin state election and the AfD was projected to win the most votes in the state of Mecklenburg-Western Pomerania Oil prices slid to their lowest in more than a week on Monday on hopes diplomacy in the Iran war will get a chance this week amid a UN meet and as investors eyed a partial recovery in shipments from Saudi Arabia despite ongoing attacks by Yemen's Houthis. 48%, virtually wiping out Friday's rise. com)