Government bond yields fluctuate in US and Eurozone

Government bond yields in the Eurozone and the United States have experienced fluctuations driven by shifting oil prices and geopolitical tensions. On Friday morning, yields on French 10-year OATs decreased by 5 basis points to 4.67%, while German Bund yields fell by 1 basis point to 3.59%. In the United States, the 10-year Treasury yield declined by 4 basis points to 5.16%.

Market analysts note that bond yields are currently closely correlated with crude oil prices. Brent crude futures for November saw a decline of 1.7% to $104.76 per barrel. This movement follows recent volatility linked to the closure of the Strait of Hormuz, a strategic passage for oil transit.

Earlier in the week, French 10-year bond yields had reached 4.70%, widening the spread with German bonds to 1.13 percentage points. This rise is attributed to global monetary normalization, inflation expectations stemming from geopolitical instability, and a reassessment of European sovereign risk. The current environment reflects restrictive policies maintained by both the Federal Reserve and the European Central Bank to combat inflation.