Eurozone Bonds Sell Off as French Risk Repriced, Yield Curve Flattens and Euro Softens - VT Markets

The content here might not be relevant fo you. Would you like to visit the North America website? European government bonds sold off in a bear-flattening move on Friday, as higher energy prices coincided with a sharp repricing of French sovereign risk. Germany’s two-year Bund yield rose 5–6bp to 3.28%, while the 10-year added 5bp to 3.52%. In FX, EUR/USD held below 1.15, with energy prices described as relatively little changed. The ECB’s consumer survey showed slightly firmer inflation expectations in August: the 1Y median rose to 3.0% y/y and the 3Y measure to 2.9% y/y, after trending down since May and then stabilising around 3%.