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2026-05-25 14:36:14
[Hopes for a US-Iran deal rekindle, Eurozone bond yields fall] (1) Eurozone government bond yields fell on Monday as market hopes for a US-Iran deal and the reopening of the Strait of Hormuz eased inflation concerns and reduced expectations for aggressive interest rate hikes by central banks. (2) US Secretary of State Marco Rubio said the US would either reach a “good deal” with Iran or deal with the Iranian issue “another way.” (3) Money markets expect the European Central Bank’s December deposit rate to be 2.57%, lower than the previously expected 2.65%; the probability of the first rate hike next month has fallen to 70%. The yield on German two-year government bonds, which is sensitive to policy rates, fell 6.5 basis points to 2.5758%, the lowest since May 8.
