Eurozone government ‌bond yields are mixed as investors weigh a flare-up in violence in the ⁠Middle East against ⁠a new ceasefire between Israel and Lebanon, Al Jazeera reports.

While the agreement between Israel and Lebanon to implement a new ceasefire has raised hopes for progress towards ending the wider US-Israeli ⁠war on Iran, there are still few signs of progress towards reopening the Strait of Hormuz.

That is a necessary step to ease energy-driven inflationary pressures and dampen expectations for further central ⁠bank rate hikes.

“The air for even higher yields is getting thinner in the absence of bleak headlines that would signal a deterioration [in the Middle East conflict],” ‌says Erik Liem, rate strategist at Commerzbank.