Eurozone Bond Yields Hold Near Highs Amid Iran Sanctions Fears

The Eurozone bond yields have edged lower as oil prices dipped, but remain close to last week's highs due to concerns over possible US sanctions on Iran and their potential impact on inflation and European Central Bank policy.

Brent crude slipped after last week's sharp jump, helping Germany's 10-year Bund yield ease to 3.246%, which is still near a more-than-15-year high.

The tug-of-war between shorter-dated yields, influenced by ECB expectations, and longer-dated yields, reflecting investors' concerns about inflation, budgets, and politics, is evident when looking at maturities across the Eurozone.

France's 30-year OAT yield remained high at 4.894%, making it a pressure point for the eurozone. Commerzbank has highlighted long-maturity French debt as especially sensitive to changes in term premium, which is the extra compensation investors demand to lend money for decades when they're unsure about future inflation or government borrowing needs.