Euro zone bond yields dip as oil prices fall, BoE pauses gilt sales
TLT•German yields and Brent crude move lower
The yield on the benchmark German 10-year government bond was last 3 basis points lower at 3.4817%, having nudged higher earlier in the day. It hit a 17-year peak of 3.5723% on Tuesday.
Meanwhile, Brent crude futures LCOc1 fell 2.6% on the day at $103.06 a barrel as reports of additional Saudi crude cargoes through Oman eased supply concerns.
Short-dated yields track policy outlook after Fed move
Germany's 2-year yield DE2YT=RR, which is more sensitive to shifts in interest rate expectations, was last little changed on the day at 3.2096%, having retreated from the day's highs.
Short-dated euro zone government bond yields had climbed earlier in the session, the day after the Federal Reserve raised interest rates for the first time in three years and signalled further increases to curb inflation.
"I think the message was clear that there's going to be more hiking," von Gerich said. "The message was on the hawkish side, there's no question about that."
