Euro zone government bond yields remained largely unchanged on Tuesday after Iran and Israel announced an end to military operations, following a US‑President Donald Trump appeal to restore oil flow through the Strait of Hormuz.
Germany’s benchmark 10‑year sovereign yield slipped slightly to 3.0502%.
Market participants now focus on the European Central Bank’s policy decision scheduled for Thursday, which is expected to be the first major central bank rate increase since the US‑Israeli‑Iran conflict triggered an energy crisis and heightened inflation pressures.
The anticipated reopening of the Strait of Hormuz may alleviate concerns about global energy supplies, potentially reducing inflation expectations and tempering further monetary tightening by major central banks.
