Euro zone bond yields rise after US and Iranian attacks
TLT•Volatility expected as investors await data and supply
Apart from developments in the Middle East, "various impulses in the coming days should keep markets on their toes, suggesting more volatility," said Rainer Guntermann, rates strategist at Commerzbank.
Guntermann said there was "a lively domestic supply schedule with large backflows," and referred to key U.S. data points including consumer inflation data for June.
Euro zone yields and oil climb on Middle East escalation
Euro zone bond yields and oil prices rose on Monday and global inflation worries were growing after U.S. and Iranian forces exchanged heavy missile and drone attacks and Tehran said it had again closed the Strait of Hormuz.
The attacks cast further doubt on the future of an interim U.S.-Iranian agreement signed last month that aimed to reopen the strait and end the war in the Middle East after a further 60 days of negotiations.
Benchmark German yields rise as markets price in tighter policy
Germany's 10-year bond yield, the benchmark for the euro zone, was last up 2.3 basis points to 3.0568%. It rose around 10 basis points across last week, its biggest weekly rise since early June, after the renewed U.S.-Iran tensions heightened uncertainty about prospects for peace in the region and the outlook for inflation and interest rates.
Worries about the macro backdrop had previously been easing on hopes for a resolution of the conflict and energy costs easing.
On Monday, Brent crude futures LCOc1 rose 3.8% to $78.94 per barrel. That put prices above pre-war levels, but far below April's highs.
