Germany’s 10-year Bund yield climbed to 3.1384%, rising for a third consecutive session and pulling further away from the three-week low of 3.10% reached on August 5, as the lack of a deal to fully reopen the Strait of Hormuz kept oil prices elevated. Iran’s foreign minister said an agreement with Oman to establish a shipping route through the strait was “very close,” but warned that it would not immediately normalize shipping flows.
On the monetary policy front, the European Central Bank left interest rates unchanged in July, after a 25 bps increase in June—its first rate hike in three years—while expectations of an imminent Federal Reserve rate hike eased following weaker-than-expected US employment data.
