German government bond yields rose Tuesday as oil recovered from a steep Monday decline, with investors also watching U.S. midterm elections that will decide control of Congress.
The Economic Times reported that the 10-year Bund yield gained 2.5 basis points to 3.32%. It put Monday’s low at 3.2898%, the lowest since Aug. 31. The report did not specify when Tuesday’s yield was observed.
In an early oil-market snapshot, Reuters put Brent crude futures at $105.25 a barrel, up 0.5%, at 8:04 p.m. ET Monday (01:04 UTC Tuesday). Brent had settled Monday at $104.77, down 7.63%. A later Associated Press market report put Brent at $106.58, up 1.7%, without giving a separate observation time for that price.
Reuters said concern about a possible disruption to Middle Eastern oil supplies accompanied the rebound. The Wall Street Journal reported a U.S. strike on Qeshm Island, citing U.S. officials, Reuters said.
Separately, The Associated Press cited an unnamed U.S. official who described strikes on Iranian targets in the Strait of Hormuz. Iranian state television reported explosions on Qeshm Island.
The ECB held its deposit facility rate at 2.50% on Oct. 29. The central bank said higher energy prices posed a risk of faster inflation and weaker growth. It said incoming data would guide its decisions at each meeting.
Deutsche Bundesbank reference data for Nov. 2 showed yields of 3.29% on a federal bond maturing Feb. 15, 2036, and 3.31% on one maturing May 15, 2036. Those were yields on individual securities, rather than Tuesday’s 10-year benchmark quote.
Reuters reported that polls and nonpartisan analysts favored Democrats to regain the U.S. House, while control of the Senate remained uncertain. Voters cast ballots Tuesday in the congressional elections.
