Euro zone yields hold near multi-year highs as traders weigh Iran sanctions
TLT•German and French bond data
Data on Tuesday showed the German economy grew by 0.3% in the second quarter, above the preliminary reading of 0.2%.
French 30-year bond yields FR30YT=RR were flat at 4.894% on Tuesday, but remained close to the 18-year high of 4.923% touched on Monday.
(Reporting by Harry Robertson; Editing by Emelia Sithole-Matarise)
ECB rate hike bets edge higher
Traders have increased their bets on European Central Bank rate hikes in recent weeks as the U.S.-Iran conflict has again pushed up energy prices.
Money markets were pointing to 44 basis points (bps) of further ECB tightening this year, down slightly from Monday but up from the 41 bps priced in at the start of last week.
Resilient economic growth has also pushed up bond yields and rate hike bets, analysts say.
Euro zone yields remain near multi-year highs
LONDON, Aug 25 (Reuters) - Euro zone government bond yields held steady on Tuesday as oil prices dipped, with traders weighing the impact of the latest U.S. sanctions against Iran.
Germany's 10-year bond yield DE10YT=RR, the benchmark for the bloc, was roughly flat at 3.242%, remaining near the 15-year high of 3.275% touched last week. Yields move inversely to prices.
Yields, particularly those on longer-dated bonds, hit their highest in a decade or more around the world last week as investors worried about inflation stemming from the U.S.-Israeli and high levels of government spending.
