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

Germany's 2-year bond yield rose 3 basis points to 2.7552 percent while the 10-year benchmark climbed to 3.099 percent, tracking higher oil prices amid escalating US-Iran tensions. Brent crude gained 0.8 percent to 85.40 dollars a barrel after Iran threatened to close the Strait of Hormuz and the US reimposed a naval blockade of Iranian ports. Money markets now price in 40 basis points of further ECB tightening this year, up from 30 bps a week ago, while US headline inflation slowed more than expected to 3.5 percent year-on-year in June from 4.2 percent in May.