Euro zone bond yields rise as oil climbs on Hormuz doubts
TLT•Hormuz negotiations remain in doubt
Trump on Monday said Iran should pay compensation for people killed in wars, attacks and protests, in response to Tehran's demands for compensation and an end to sanctions.
Iran earlier on Monday said it was nearing a final pact with Oman defining new shipping lanes through the Strait, but repeated that the U.S. must meet conditions, including compensation, before opening the key energy waterway.
Oil prices ticked slightly higher on Tuesday, with Brent crude LCOc1 up 0.5% at $88.20 after rising 5% on Monday as the prospect of a near-term Hormuz deal slipped away.
Italian and French yields also rise
Italian and French 10-year bond yields IT10YT=RR, FR10YT=RR were both up 3 bps.
Euro zone yields edge higher as oil rises
Euro zone bond yields ticked up on Tuesday as oil prices rose after U.S. President Donald Trump demanded Iran pay its own compensation to the U.S., further dimming the prospect of an imminent deal to reopen the Strait of Hormuz.
Germany's 10-year bond yield DE10YT=RR rose 2 basis points to 3.198%, after climbing 5 bps on Monday on the back of rising oil prices. Yields rise as prices fall and vice versa.
ECB expectations and U.S. inflation data in focus
Germany's 2-year bond yield , which is sensitive to European Central Bank rate expectations, rose 2 bps to 2.809% after rising 5 bps on Monday.
