Mideast Conflict, Energy Prices Likely Key Drivers for Eurozone Bond Yields
Dow Jones
Sep 25
0520 GMT - The U.S.-Iran conflict, as well as energy price developments remain the main drivers and the key uncertainty for eurozone government bond yields and market pricing of the European Central Bank's rate path, say Societe Generale rates strategists in a note. "The speed of the recent ECB repricing has surprised many market participants, but the level of the terminal rate can be rationalized," they say. Money markets currently price in 100 basis points of interest rate hikes by the end of October 2027, according to LSEG.
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