Oil drop lowers eurozone borrowing costs

Eurozone 10-year government bond yields — which loosely track mortgage and corporate borrowing rates — fell to 3.61% on August 25, 2026, down 0.05 points. Falling oil prices calmed inflation fears after yields hit multi-year highs the prior week on Iran war escalation. Commerzbank's Hauke Siemssen says energy prices remain "in the driving seat."