President Trump stated that the United States does not need to reach an agreement with Iran, which pushed oil prices higher, leading traders to increase their bets on central bank rate hikes.
UK 2-year government bond yields rose 5 basis points to 4.96%; swap contracts indicate that the expected rate hike by the Bank of England in December is 20 basis points, with a cumulative increase of 93 basis points by the end of 2027, up from the previous 19 basis points and 87 basis points respectively.
German 2-year government bond yields rose 1 basis point to 3.13%; swap contracts show that the expected cumulative rate hike by the European Central Bank by the end of 2027 is 72 basis points, higher than the previous 70 basis points.
Meanwhile, US 2-year Treasury yields rose 10 basis points to 4.83%; swap contracts indicate that the expected cumulative rate hike by the Federal Reserve by the end of 2027 is 84 basis points, up from the previous 74 basis points.
US stocks rebounded, with Nvidia's sell-off driving other stocks higher; Brent crude oil rose more than 1% to $94 per barrel.
Market: German 10-year government bond yields rose 1 basis point to 3.33%.
German government bond futures fell 7 points to 122.43%.
Italian 10-year government bond yields rose 2 basis points to 4.36%.
The spread between Italian and German government bonds widened by 1 basis point to 104 basis points.
French 10-year government bond yields rose 4 basis points to 4.83%.
UK 10-year government bond yields rose 5 basis points to 5.28%.
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