Eurozone Yields Fall, Stock Rally Takes a Breather

SINGAPORE/LONDON—Germany’s 10-year government bond yield dropped to its lowest in six months on Tuesday and world shares paused around four-month highs as traders upped bets on European Central Bank rate cuts early in 2024 and grappled with the Federal Reserve’s outlook.
The 10-year Bund yield dropped as much as 7 basis points to 2.28 percent, its lowest since June 2, after European Central Bank official Isabel Schnabel said in an interview with Reuters that further interest hikes are “rather unlikely,” after an unexpectedly big fall in inflation.
Bond yields move inversely to prices and government bonds in most developed markets globally took a battering in 2022 and earlier this year after a rapid rise in central bank policy rates….