Eurozone Bond Yields Rise Amid Middle Eastern Tensions

Eurozone bond yields climbed on Tuesday in early trading, influenced by subdued overnight activity in U.S. Treasuries, as the conflict between Israel and Iran persisted into its fifth day. President Trump called on Iranians to evacuate Tehran, pointing to the rejection of a nuclear weapons agreement as the catalyst.

German 10-year yields, the eurozone benchmark, rose by 2.5 basis points to 2.556%, while short-term Schatz yields increased by 1.2 basis points to 1.857%. Concurrently, U.S. Treasury yields experienced a decline of 3.2 basis points in Asia, reaching 4.422% before stabilizing at approximately 4.44%.

ECB President Christine Lagarde, in a Financial Times piece, labeled the currency's current status as a "global euro moment" but emphasized that achieving international prominence requires effort. She highlighted structural challenges confronting the EU, such as low growth and fragmented capital markets.

(With inputs from agencies.)