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Energy price declines ease inflation concerns, euro zone bond yields fall from multi-year highs

Energy price declines ease inflation concerns, euro zone bond yields fall from multi-year highs

智通财经智通财经2026/09/03 09:41
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  1. Eurozone government bonds ended a six-day losing streak on Thursday, with yields retreating from multi-year highs. Softer energy prices eased inflation concerns, and market expectations for an ECB rate hike narrowed slightly.
  2. The yield on Germany's 10-year government bonds fell to 3.36%, slightly below Wednesday's 15-year high of 3.3951%. Brent crude oil pulled back from a six-week high, and natural gas prices also declined from their highest level since January 2023.
  3. US President Trump stated that the latest US military action against Iran would not last long, providing some support to market sentiment.
  4. However, yields remain elevated as markets continue to worry about energy-driven inflation, rising interest rates, and fiscal sustainability in countries such as France and the UK.
  5. Money markets are still fully pricing in a 25 basis point rate hike by the ECB next week to 2.5%. At the same time, market pricing indicates a nearly 100% probability that the deposit rate will reach 3% by June 2027, implying two more hikes before mid-2027.
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