Euro zone bond yields tick higher along with oil prices after big swings

Global markets face crosscurrents as oil prices rose around 0.8% with Brent crude at $85.40 a barrel amid escalating US-Iran tensions, including threats to the Strait of Hormuz and a US naval blockade of Iranian ports. Germany's 2-year bond yield climbed 3 basis points to 2.7552% while the 10-year benchmark rose to 3.099%, as traders raised bets on ECB rate hikes to about 40 basis points this year from 30 bps a week ago. Separately, Power Finance Corporation raised USD 300 million via floating rate notes maturing July 2029, to be listed on NSE IFSC and India INX. US headline inflation slowed to 3.5% YoY in June from 4.2% in May, though the disinflation may be undermined by rising oil prices.