Eurozone Government Bond Yields Fall as Oil Price Retreats
Dow Jones
Aug 26
0708 GMT - Eurozone government bond yields decline, with the 10-year German Bund yield slipping below 3.20% for the first time since Aug. 14, according to LSEG data. The fall is driven by lower oil prices on news that Iran and Oman have unveiled a joint framework to restore safer navigation on the Strait of Hormuz. "If we do move closer to a deal, we could see some short covering at the long end of the curve," Jefferies' Mohit Kumar says in a note. This could push long-dated yields lower. Jefferies' postioning indicators suggest "close to stretched" short positions in long-dated Bunds and U.S. Treasurys, he says. The 10-year Bund yield falls more than 2 basis points to a low of 3.186%, according to Tradeweb.
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