Europe Leads Global Bond Pullback as Oil Stokes Inflation Fears - Bloomberg


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Key Points

A global bond selloff was led by Europe, driven by concerns over Middle East conflict escalating and potentially disrupting oil supply, thus increasing inflation.

  • German 10-year bond yields rose to 2.56%, a one-week high.
  • US Treasury 10-year yields also increased, reaching 4.40%.

Main Argument

The escalating conflict in the Middle East is a major factor contributing to the rise in oil prices and subsequent global inflation fears, resulting in a significant selloff in the bond market.

Crucial Details

The increase in German and US Treasury yields reflects a broader market response to increased inflation risk associated with potential oil supply disruptions.

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Europe led a global bond selloff as the escalating conflict in the Middle East stoked fears of an oil supply disruption that would fan inflation.

German yields climbed across the curve, with 10-year yields up as much as five basis points to 2.56%, the highest level in a week. Treasury yields also rose, with 10-year yields up as much as three basis points to 4.40%.

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