Germany’s 10-year Bund yields fell toward 2.95%, their lowest since May 29, after oil prices tumbled following the US and Iran’s preliminary agreement to end their three-month conflict. The deal, which includes lifting the US blockade and reopening the Strait of Hormuz, a critical route for 20% of global energy, triggered a sharp decline in oil prices, easing pressure on central banks to hike rates to combat inflation. A memorandum of understanding is set to be signed in Switzerland this Friday, though uncertainty lingers as markets await further details and the status of Iran’s nuclear program remains unresolved. Money markets now expect around 30 basis points of additional tightening from the European Central Bank this year, equivalent to one rate hike, down from nearly two hikes priced in before last Thursday’s rate increase.