Eurozone government bonds fell on Friday as a spike in energy prices pushed
global bond markets toward their worst weekly showing since early March,
prompting faster central-bank tightening. The ECB raised rates 25bps on
Thursday, revised inflation forecasts higher and trimmed growth projections. US
CPI due Friday may strengthen expectations of a Fed hike next week; the BOJ
meets next week and is widely expected to tighten. German two-year Bund yield
rose 3bps to 3.208%, the highest since Oct 2023, and gained about 23bps on the
week — the largest weekly rise since the first week of the early-March conflict.
G7 two-year yields averaged a roughly 25bps weekly increase, the biggest since
that first week; 10-year yields rose about 20bps, led by France at +25bps. US
10-year yield neared 5%.
