Euro zone bonds little changed as oil prices steady
TLT•German two-year yield edges higher
Germany's two-year yield DE2YT=RR, which is sensitive to changes in interest rate expectations, was up about 1 basis point at 2.781%.
Euro zone bond yields little changed
LONDON, Aug. 13 (Reuters) - Euro zone bond yields were little changed on Thursday as oil prices steadied 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 little changed at 3.157%, within its recent range.
Oil prices and ECB rate expectations
Investors are still watching discussions between Washington, Tehran and mediators on any end to the Iran war and the potential reopening of the Strait of Hormuz, although a deal appears to be out of reach with attacks on ships occurring this week and both sides stepping up their rhetoric.
The stalemate is keeping oil prices steady although elevated oil prices since the start of the war have prompted investors to bet that the ECB will continue to raise rates after a rate hike in June.
Markets are pricing in around a 90% chance of a quarter-point rate hike at next month's meeting.
U.S. inflation data eases Fed hike expectations
Investors had turned their focus to 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.
Financial markets were pricing in a roughly 35% chance of a rate increase at the Fed's Sept. 15 to 16 policy meeting, down from about 50% on Tuesday.
