Euro zone bond yields slip as oil falls and Hormuz tensions pull the strings

A slip in yields ties directly to Hormuz risk and ECB timing

Euro zone government bond yields edged lower as oil prices fell after a sharp selloff, easing immediate market pressure. Traders are also focused on developments in the Strait of Hormuz, where geopolitical risk can quickly change energy costs and inflation expectations. That uncertainty is shaping expectations for the ECB, which debated rate hikes last week and may need tightening in June.