Commerzbank rates strategist Erik Liem said positive developments from Iran have pushed oil prices lower and supported German government bonds, with the 10-year Bund yield probing levels below 3.2%. Bunds have strengthened both on absolute price and versus swaps, weighing on yields, but eurozone government bond spreads remain weak. Although intra-eurozone spreads narrowed on Tuesday, their move has lagged the drop in energy prices and remains near highs seen in the early phase of the Iran confli

Commerzbank rates strategist Erik Liem said positive developments from Iran have pushed oil prices lower and supported German government bonds, with the 10-year Bund yield probing levels below 3.2%. Bunds have strengthened both on absolute price and versus swaps, weighing on yields, but eurozone government bond spreads remain weak. Although intra-eurozone spreads narrowed on Tuesday, their move has lagged the drop in energy prices and remains near highs seen in the early phase of the Iran conflict.