LT yields yesterday continued recent reacceleration. This tells at least as much on current market momentum as on the news that served as an explanation. Regional German May inflation published throughout the day were soft (0.1% M/M). At 0.2% M/M HICP inflation also decelerated markedly (0.6% in April), but due to base effects, Y/Y inflation jumped from 2.4% to 2.8%.

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