Eurozone Bond Yields Steady Amid Iran Sanctions and Oil Price Volatility

Global market sentiment was steady on Tuesday as investors assessed the impact of fresh US sanctions on Iran and a modest pullback in oil prices. The Eurozone government bond yields were largely unchanged, with Germany's 10-year benchmark yield remaining close to its 15-year high of 3.275% reached last week.

Oil prices eased after markets reassessed the potential economic impact of the latest US sanctions on Iran. Brent crude fell around 1% to $91.40 a barrel, down from Friday's one-month high of $94.80. This moderation in energy prices has led investors to scale back their expectations for further European Central Bank interest-rate hikes.

The renewed rise in energy prices had previously prompted investors to increase expectations for rate hikes, with money markets pricing about 44 basis points of additional ECB tightening by the end of the year. However, this expectation has slightly decreased from Monday's level but remains above the 41 basis points priced in at the beginning of last week.