Eurozone bond yields have fallen, in contrast to the trend in US Treasury yields.

The yield on Eurozone government bonds fell in early trading as investors shifted their focus away from the potential long-term inflation impact of the Middle East conflict and instead sought safer assets. Government bond supply on Wednesday will be very light, with only Germany issuing 1 billion of green German government bonds due in February 2033. The yield on 10-year Eurozone government bonds generally fell by around 1 basis point; according to Tradeweb data, the yield on German 10-year government bonds fell by 1.1 basis points to 2.764%. The trend in Eurozone government bond yields contrasts with that of US government bond yields, which continue to rise, with the yield on 10-year US government bonds rising by 2.7 basis points to 4.084%.