Eurozone bond yields rise as investors hope for resolution of Middle East issues.

The yield on Eurozone government bonds has risen, following the trend of US Treasury yields. The prospect of a resolution to the Middle East conflict has boosted investor sentiment, including a possible round of talks between the US and Iran over the weekend, as well as a meeting led by France and the UK with around 40 countries participating to discuss reopening the Strait of Hormuz. However, oil prices remain high, and the ongoing risk of oil shortages in Europe in the coming months continues to put pressure on the outlook. According to data from Tradeweb, the yield on 10-year German government bonds rose by 2.5 basis points to 3.051%; the yield on 10-year French government bonds rose by 3 basis points to 3.697%; and the yield on 10-year Italian government bonds also rose by 3 basis points to 3.825%.