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European government bond markets stabilise after French turmoil and oil drop

French 10-year yields swung sharply earlier in the week, falling by as much as 16 basis points before later rising 18 basis points, as Brent crude retreated toward $100 a barrel.

Reported · Written up by our desk · Government Bonds

European government bond markets regained some stability after a volatile week, with improved sentiment tied to easing oil prices and a pause in new developments in France, Bloomberg reported.

French government bonds were on track for their first weekly gain in six weeks, while Italian debt was moving toward its first advance in nine weeks, as yields across the region declined.

The move followed sharp energy-linked price swings earlier in the week, with Brent crude retreating toward $100 a barrel after fluctuations that saw French 10-year yields fall by as much as 16 basis points before rising 18 basis points on subsequent days.

The recovery also reflected assurances from European Central Bank President Christine Lagarde that the central bank has tools to address unjustified and disorderly market moves, alongside a US decision to postpone further strikes on Iran until after November's midterm elections, the report added.

Latest closeWTI crude $91.10 ▲3.2%|Brent $103.93 ▲3.7%

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