MERZ said the EU needs to complete budget negotiations this year.

Eurozone government bond yields fell in early trade, tracking declines in US Treasuries as oil prices eased amid diplomatic efforts to resolve the Middle East conflict. The Netherlands and Italy will hold government bond auctions on Tuesday. The economic calendar is light this week, with focus later on preliminary July CPI and preliminary Q2 GDP. The 10-year German Bund yield was down 2.1 bps intraday at 3.105%.

EUR/CHF climbed to a six-month high of 0.9318.