Euro Zone Yields Fall after Iran Raises Prospect of Hormuz Reopening
Euro zone bond yields fell for a second day, with Germany's 10-year yield down 1 basis point to 3.44%. The decline followed Iran's suggestion that the Strait of Hormuz could reopen and a US signal of openness to talks with Tehran, which pushed oil prices lower. Brent crude futures were last down 1% to $100 a barrel.
Why it matters: This matters for the energy prices theme, as the prospect of reopening the Strait of Hormuz is lowering oil prices and thereby reducing inflation expectations and bond yields.