Euro zone bond yields were little changed after reversing an earlier decline as oil prices rose following U.S. President Donald Trump’s comments that the United States does not need a deal with Iran. Germany’s 10-year yield was flat at 3.322%, while Brent crude rose 1% to $94 a barrel.
Germany’s 10-year government bond yield, the euro zone benchmark, was flat at 3.322% and on track for a weekly rise of about 7 basis points. Its two-year yield was also flat, at 3.114%, and headed for a 15-basis-point weekly increase.
Trump said on social media that the United States did not need a deal with Iran, prompting oil prices to rise. Brent crude gained 1% to $94 a barrel after reaching its lowest level since late August earlier in the week.
A hotter-than-expected U.S. inflation reading had pushed Treasury yields higher and led traders to increase bets on a Federal Reserve rate hike in December. Markets priced in about an 80% chance of a 25-basis-point European Central Bank increase in December. Italy sold €7.25 billion of medium- and long-term bonds, while its 10-year yield rose 1 basis point to 4.371%.
