Euro Zone Bond Yields Drop Amid U.S. Inflation and Middle East Tensions

Euro zone bond yields experienced a decline on Thursday, as market participants assessed softer U.S. inflation figures and the potential for increased safe haven investment amid escalating Middle East tensions. Germany's 10-year bond yield, a euro zone benchmark, fell by 4 basis points, reaching 2.50%, its lowest point in a week.

The global bond markets saw a drop in yields on Wednesday following reports that U.S. consumer prices rose less than anticipated in May, driven by decreasing petrol costs. The situation was further influenced by a rush to safe investments after U.S. President Donald Trump announced the relocation of U.S. personnel from the Middle East due to security concerns.

Simultaneously, oil prices ticked higher on Wednesday, adding complexity to the bond market scenario. In line with Germany's trend, Italy's 10-year yield also reduced by 3 basis points, standing at 3.43%.

(With inputs from agencies.)