German policy-sensitive, 2-year yields hit July 2024 high as Brent tops $90
TLT•Money markets price further ECB tightening
Money markets indicated the ECB deposit rate at 2.70% in December and 2.78% in February 2027, from the current 2.25%. They also fully priced a rate hike by September.
Brent tops $90 on Middle East supply concerns
Brent oil prices climbed 2.5% to more than $90 per barrel, as escalating U.S.-Iran hostilities restricted oil shipments through the Strait of Hormuz.
German 2-year yields rise to highest since July 2024
German two-year government bond yields climbed to a two-year high on Monday as rising oil prices driven by the Iran conflict reinforced expectations that the European Central Bank will deliver two additional rate hikes by early 2027.
Germany’s 2-year yields, more sensitive to expectations for policy rates, rose 3.5 basis points (bps) to 2.81%, after reaching 2.8174%, its highest level since July 2024.
