German bond yields rose as oil prices increased amid U.S.-Iran tensions. This surge strengthened expectations for the European Central Bank to tighten monetary policy. Money markets now anticipate higher deposit rates by early 2027. Traders have fully priced in a rate hike at the ECB's upcoming September meeting. Italy's 10-year bond yield also increased, widening the spread with German yields.

According to Reuters, policymakers are widely expected to keep the ECB's key interest rate unchanged at 2.25%, following June's surprise rate hike that made the central bank the…

German bond yields rose as oil prices increased amid U.S.-Iran tensions. This surge strengthened expectations for the European Central Bank to tighten monetary policy. Money…

Euro zone government bond yields are rising as oil prices remain elevated. This situation threatens inflation outlook and supports tighter European Central Bank policy. …