Rising oil prices push euro zone government bond yields higher, following the trend of US Treasury yields

According to Golden Ten Data on July 15, eurozone government bond yields opened higher on Wednesday, following the trend of U.S. Treasury yields. The rise in yields was mainly driven by the increase in oil prices; however, U.S. inflation data released on Tuesday came in below market expectations, prompting both U.S. and European 10-year government bond yields to retreat from the eight-week highs previously reached. Analysts at Belfius stated in a report that this reflects comments by Federal Reserve Chair Powell (who reiterated his commitment to price stability during his testimony to Congress), as well as elevated oil prices caused by military attacks in the Middle East. According to Tradeweb data, the yield on 10-year German government bonds rose by 3.3 basis points to 3.105%.