German Bonds Jump as Energy Prices Slump on US-Iran Ceasefire

German bonds and their euro area peers surged after energy prices sank following a ceasefire between the US and Iran.

Yields on 10-year German debt slid 18 basis points to 2.90%, while those on Italian peers slumped 33 basis points to 3.64%. Traders aggressively pared wagers on European Central Bank interest-rate hikes, pricing 51 basis points of monetary-policy tightening this year compared to 80 basis points on Tuesday.