Eurozone and U.S. bond yields edge lower as markets weigh data and oil

Bund yields slipped and U.S. Treasury yields eased before Fed minutes, as investors tracked weak U.S. labor data, upcoming eurozone releases, oil supply changes and a NATO summit later in the week.

Summary

Eurozone government bond yields edged lower and U.S. Treasury yields were mixed to slightly lower early Monday as investors weighed softer U.S. labor data, a light but important eurozone data calendar, oil-market developments and geopolitical events ahead of Federal Reserve minutes. Germany’s 10-year Bund yield fell 0.8 basis points to 2.923%, while U.S. yields included a 2-year note around 4.108%-4.126%, a 10-year yield around 4.459%-4.472%, and a 30-year bond at 4.969% in early trading. The U.S. dollar index rose 0.2% as markets reopened after the holiday. Investors were also tracking OPEC+ plans to raise output, Brent crude just below $72 a barrel, recovering but still volatile Strait of Hormuz shipping, unresolved Middle East peace talks, and a NATO summit in Ankara, Turkey, for their implications for growth, inflation and interest-rate expectations.

Terms & Concepts
  • German Bund: Germany’s benchmark government bond.
  • basis points: One-hundredth of a percentage point.
  • Fed minutes: Meeting notes from the Federal Reserve, the U.S. central bank.