Pessimism spreads in the eurozone bond market as investors grow cautious ahead of the long weekend

According to Golden Ten Data on March 31, eurozone government bond yields edged higher in early trading as investors assessed the potential impact of a prolonged Middle East conflict on inflation and growth. Senior rate strategists at ING, Michiel Tukker and Benjamin Schroeder, stated in a report: "Given that the risk of a prolonged conflict remains hard to dismiss, market pessimism dominates the overall tone." They pointed out that the upcoming long Easter weekend may prompt investors to reduce their exposure to risk assets ahead of the holidays, and they expect increased market volatility before the holiday period. According to Tradeweb data, the yield on Germany's 10-year government bond rose by 1 basis point to 3.045%, while France's 10-year government bond yield increased by 1.6 basis points to 3.777%.