Bund Yields Edge Lower Despite Rising Oil Prices
The 10-year Bund yield edged lower to 3.48%, as German government bonds continued to benefit from safe-haven demand despite a rebound in oil prices. Brent crude rose following a deadly attack on Riyadh’s airport in Saudi Arabia, while Ukraine reported continued Russian attacks on its energy infrastructure. European bond yields remain close to multi-year highs amid persistent energy-driven inflationary pressures, resilient economic activity and concerns over France’s public finances. The country’s minority government aims to reduce the fiscal deficit to 5% of GDP in 2027, although securing parliamentary support for spending cuts remains uncertain ahead of next year’s presidential election. German politics also remained in focus after Bärbel Bas announced her resignation as Labour Minister and SPD leader. Investors are now awaiting Wednesday’s US CPI report and remarks from ECB policymakers at this week’s IMF-World Bank meetings for further clues on the monetary policy outlook.
Story updates
48%, as German government bonds continued to benefit from safe-haven demand despite a rebound in oil prices. Brent crude rose following a deadly attack on Riyadh’s airport in Saudi Arabia, while Ukraine reported continued Russian attacks on its energy infrastructure. European bond yields remain close to multi-year highs amid persistent energy-driven inflationary pressures, resilient economic activity and concerns over France’s public finances. The country’s minority government aims to reduce the fiscal deficit to 5% of GDP in 2027, although securing parliamentary support for spending cuts remains uncertain ahead of next year’s presidential election.
German politics also remained in focus after Bärbel Bas announced her resignation as Labour Minister and SPD leader. Investors are now awaiting Wednesday’s US CPI report and remarks from ECB policymakers at this week’s IMF-World Bank meetings for further clues on the monetary policy outlook.