Oil Prices Could Prevent 10-Year Bund Yields From Swift Falls -- Market Talk

0558 GMT - Sticky oil prices could limit the potential for 10-year German Bund yields to fall swiftly towards early July levels--below 2.90%--, while setbacks in Bunds remain better buying opportunities, Commerzbank's Erik Liem and Rainer Guntermann say in a note. Risk sentiment is expected to improve on hopes for resuming traffic via the Strait of Hormuz, the rates strategists say. "Hopes for a more tangible announcement of a deal between U.S. and Iran and prospects of resuming vessel traffic through the Strait of Hormuz, alongside signals that the U.S. is poised to lift Iran-related sanctions, should bolster risk sentiment further," they say. Thursday's government bond issuance in the eurozone will come from Spain and France. The 10-year Bund yield closed at 3.104% on Wednesday, according to LSEG. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 06, 2026 01:58 ET (05:58 GMT)