Euro zone bond yields rose slightly on Wednesday after Iran said it would not meet U.S. delegates for talks in Qatar, casting doubt on the peace process, and as traders awaited inflation data for the bloc.
Germany's 10-year bond yield (DE10YT=RR), the benchmark for the bloc, rose 2 basis points (bps) to 2.934%, around its highest in a week.
Euro zone yields fell sharply in May and June as the U.S. and Iran neared and then confirmed an agreement to end the war and allow energy to flow through the key Strait of Hormuz.
Oil prices continued to trade at around their lowest level since the war began, although they were very slightly higher on Wednesday. Brent crude ICEEUR:BRN1! inched up to $73.05 a barrel, well off highs of above $125 seen in late April.
Italy's 10-year bond yield TVC:IT10Y rose 5 bps to 3.644%, up from a more than three-month low of 3.556% touched on Tuesday.
Bond traders were waiting for euro zone inflation data, due out later in the morning, which is expected to show price growth cooled to 3% in June from a 2-1/2-year high of 3.2% in May.
The European Central Bank's annual monetary policy conference in Sintra, Portugal, was set to conclude on Wednesday, with ECB President Christine Lagarde among those scheduled to speak.