Euro area sovereign yields edged higher, with peripheral spreads remaining mostly unchanged, as markets continued to price in up to three ECB rate hikes in 2026 despite comments from the ECB’s Schnabel, who noted that the central bank is in no rush to tighten policy and can remain data-dependent. US Treasury yields were mixed with short-end yields easing.
In currency markets, the US dollar strengthened further, particularly against the yen, which weakened to around 160 per dollar, reviving concerns over potential intervention. In commodities, European TTF gas traded near €54/MWh, while gold prices edged slightly higher.