Global Market: German bond yields hit two-year high as oil surge fuels ECB rate hike bets
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6 Articles
The Economic Times
Times of IndiaGlobal Market: German bond yields hit two-year high as oil surge fuels ECB rate hike bets
German bond yields rose as oil prices increased amid U.S.-Iran tensions. This surge strengthened expectations for the European Central Bank to tighten monetary policy. Money markets now anticipate higher deposit rates by early 2027. Traders have fully priced in a rate hike at the ECB's upcoming September meeting. Italy's 10-year bond yield also increased, widening the spread with German yields.
Germany’s debt returns to profitability that has not been seen since 2011 in the face of increased public spending, the ECB’s withdrawal and the fear that energy will reactivate European inflation.
11:08 The German ten-year bond yield rises to 3.20 percent, the highest level since 2011. This new peak puts nerves on edge ahead of the ECB's interest rate decision this afternoon.
Inflation concerns in the wake of higher energy prices – as a result of the Iran war – are pushing up market interest rates around the world. In Germany, the yield on ten-year government bonds has risen to 3.20 percent, the highest level since 2011.
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