Global Bond Markets See Respite Amid Yield Retreat

Long-dated German bond yields eased from a 14-year high as the global selloff in government bonds paused. Yields dropped in thin trade before Christmas, with Japanese bonds rallying after previous selloffs. Safe-haven assets like gold rose amid geopolitical tensions, while ECB's Schnabel influenced rate hike expectations.

In a market adjustment, long-dated German bond yields moved away from a 14-year high as global bonds took a breather from their recent selloff. The decrease in yields, which move inversely to prices, was noted in various regions as thin trading occurred ahead of the Christmas holidays.

Japanese bonds, which had led the previous sessions' declines, were at the forefront of a market rally. Germany's 30-year yield dipped to 3.51% from Monday's peak of 3.56%, marking its highest since 2011. The 10-year yield, considered the eurozone's benchmark, also saw a decline to 2.88%.

Geopolitical tensions led safe-haven assets like gold and silver to record highs, partly fueled by U.S. actions to seize more Venezuelan oil tankers. In the monetary policy arena, European Central Bank's Isabel Schnabel tempered interest rate hike expectations, impacting market speculations about future borrowing cost increases.

(With inputs from agencies.)