Eurozone government bond yields opened slightly firmer on Thursday, with market attention pivoting to elevated natural gas prices rather than the slide in crude oil.
Senior analyst Jesper Fjaersted at Denmark's Danske Bank noted in a research note that natural gas has overtaken oil as the primary inflation worry for European bond traders. He pointed out that despite reports of a tentative framework agreement between Iran and Oman aimed at restoring safe passage through the Strait of Hormuz, which has weighed on Brent crude prices, European natural gas prices remain near five-month highs.
No bond supply is scheduled in the eurozone on Thursday. According to Tradeweb data, the yield on Germany's 10-year Bund rose 0.7 basis points to 3.229%.