Eurozone Bond Yields Rise as Natural Gas Prices Climb

Eurozone government bond yields rose slightly on Thursday. Investors shifted their inflation concerns away from falling oil prices and toward elevated natural gas prices, which are currently trading near five-month highs.

This market shift follows a decline in Brent crude oil prices. The price drop occurred after reports emerged of an interim framework established between Iran and the Government of Oman to ensure safe shipping through the Strait of Hormuz.

In Asia, Japanese Government Bond futures edged higher in Tokyo. Investors are awaiting a speech by Bank of Japan Deputy Governor Himino in Saitama. Market expectations are growing that the Bank of Japan will raise interest rates during its September meeting to combat persistent inflation, yen weakness, and rising yields.