Germany's Two-Year Bond Yield Hits 2024 High on Inflation Concerns, U.S. CPI Cools Gains

According to Jin10, Germany's two-year bond yield rose to 2.7985% on July 14, marking its highest level since July 2024, driven by market concerns that Iran conflict tensions could push energy prices higher and reignite inflation pressures. However, stronger-than-expected cooling in U.S. June consumer prices eased the advance. Money markets now price the European Central Bank's deposit rate at 2.68% by end-2026, up from the current 2.25%, with a 25 basis-point September rate hike fully priced in.
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