Global bond markets steady as oil dips and US Treasury plans ease rate pressure
Global bond markets stabilized Tuesday after a drop in oil prices and news of potential US Treasury cash adjustments cooled borrowing costs following weeks of volatility. The two-year German Schatz yield fell to 2.852%, while the ten-year Bund yield edged up to 3.249%. The relief came from Washington as a US threat of new Iran sanctions proved largely symbolic, easing energy inflation fears, with Brent crude trading near $91.50 a barrel. Reports that the Treasury may use its cash balance to fund buybacks also reduced debt issuance pressure. German GDP grew 1.0% year-on-year in Q2, beating forecasts, without reigniting rate hike bets. Markets now await Nvidia earnings and Fed Chair Kevin Warsh's Jackson Hole speech Friday for policy direction.