Euro zone bond yields fall slightly on lower oil, inflation relief
TLT•Euro zone yields edge lower as oil retreats
Euro zone bond yields were marginally lower on Thursday as oil prices retreated and U.S. inflation data cooled expectations for a rate hike from the Federal Reserve next month.
Germany's 10-year yield DE10YT=RR, the benchmark for the euro zone, was down just under 1 basis point at 3.151%, but within its recent range.
"Oil prices are of course a factor in bond prices because it affects monetary policy to some degree," said René Albrecht, analyst at DZ Bank.
"But we have seen declines in oil prices which didn't really impact yields because since (Kevin) Warsh became Fed chair you've had increase in Fed hiking probabilities."
Investors had been closely watching Wednesday's U.S. consumer price inflation data, which showed benign underlying price pressures, prompting markets to reduce the chances of an interest rate hike from the Fed next month.
