Eurozone government bond yields edged higher, with natural gas prices becoming a key inflation concern.
Eurozone government bond yields opened slightly higher, with market focus shifting from falling oil prices to rising natural gas prices. Danske Bank analyst Jesper Fjarstedt noted that natural gas has replaced oil as the primary inflation concern for European bond traders. Despite reports of a provisional framework between Iran and Oman to resume safe shipping in the Strait of Hormuz, which led to a drop in Brent crude prices, European natural gas prices remained near a five-month high. Germany's 10-year government bond yield rose 0.7 basis points to 3.229%.
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