The gap between German and US 10-year borrowing costs is near its narrowest in a month. Germany’s 10-year bond yield rose 1 basis point to 3.13%, its highest since May 20.
Euro Zone Yields
The escalation of fighting in the Gulf sent euro zone yields higher. Traders fear the renewed climb in oil and gas prices could push inflation higher and force the European Central Bank to raise rates more aggressively.
The 10-year US Treasury yield was last 4.56%, up 2 basis points on the day, but flat on the week. The US is less exposed to energy from the Gulf than Europe, and traders have pared back bets on imminent Federal Reserve rate hikes after this week’s cooler-than-expected prints for both consumer and producer inflation.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
