European bond market: As oil price gains narrow, European government bonds rise

As the increase in oil prices narrows, Brent crude oil prices are reported at $102 per barrel, with German government bonds and other government bonds rising. Long-term bonds saw the most significant increase, with UK 10-year government bonds outperforming other bonds of the same duration.

UK government bonds had the largest increase, while the money market adjusted downwards its bets on the Bank of England raising interest rates in 2026; the implied rate hikes from swap contracts decreased by 5 basis points to 14 basis points from Monday’s closing level.

The Italy-Germany 10-year government bond spread and the France-Germany 10-year government bond spread narrowed by 2 basis points and 1 basis point, respectively.

Brent crude oil prices fell by about 3% from the opening levels of the European bond market.

Market:

The yield on German 10-year government bonds decreased by 4 basis points to 2.92%;

German government bond futures rose by 26.00 points to 126.45%;

The yield on Italian 10-year government bonds decreased by 7 basis points to 3.66%;

The Italy-Germany government bond spread narrowed by 2 basis points to 75 basis points;

The yield on French 10-year government bonds fell by 5 basis points to 3.56%;

The yield on 10-year UK government bonds decreased by 8 basis points to 4.69%.

Massive information and precise interpretations can be found in the Sina Finance APP.

Editor: Li Tong