Euro zone bond yields steady near two-week low after Middle East peace deal

A US-Iran deal to reopen the Strait of Hormuz is easing energy supply concerns, pushing Brent crude to its lowest level since March 10. Lower oil prices have reduced inflation and growth worries, trimming expectations for further ECB rate hikes, with money markets now pricing in only 32 bps of tightening by year-end. Germany's 10-year Bund yield held near 2.954%, close to a two-week low, while ECB policymakers remained divided on whether the peace deal provides immediate inflation relief.