Eurozone bond yields drop, Italian government bonds outperform

The yield trend mirrors that of US Treasuries, but the decline is more pronounced. Bonds benefited from the easing of rate hike expectations amid the backdrop of high oil prices. Hauke Siemssen of Commerzbank stated in a report: “The bond market is becoming increasingly numb to news from the Middle East, while supply and the tone of the European Central Bank have become the focal points.” According to London Stock Exchange Group data, money markets expect the European Central Bank to keep rates unchanged at its April meeting. Tradeweb data shows the 10-year German government bond yield fell 2.6 basis points to 3.012%, while the 10-year Italian government bond yield dropped 3.6 basis points to 3.767%.