Euro zone government bond prices edged higher on Wednesday as investors remained cautious ahead of potentially market-moving U.S. inflation data, while a heavy pipeline of new bond supply from Germany and the United States also kept trading activity subdued, Reuters reported.
Renewed concerns over the Middle East added another layer of uncertainty to bond markets after fresh attacks on shipping in the Gulf pushed oil prices above $89 a barrel. The rise in crude prices has raised fears that the conflict could prolong inflationary pressures globally, a development that would be particularly damaging for fixed-income assets.
