Euro zone bond yields jumped to multi-year highs on Tuesday as a global fixed-income selloff intensified alongside a surge in oil prices. Germany's and France's 10-year yields hit levels last seen in 2011 and 2008, while markets also pared back expectations for Federal Reserve rate hikes.
Germany's 10-year yield climbed 4 basis points to 3.255%, its highest level since May 2011. Bond yields move in the opposite direction to prices.
France's 10-year yield rose to 4.118%, its highest point since November 2008. The spread between German and French 10-year yields widened to 86 basis points, its broadest gap since October 2025. Spain and Italy, which carry higher debt loads, saw their yields increase by even larger amounts.
Rising oil prices, driven by diminishing expectations for a quick resolution to the war in Iran, increased inflation concerns across markets.
Fiscal stability concerns in France, Japan, the UK and the United States added pressure on global bonds. Markets have also reduced their expectations for Federal Reserve rate hikes following recent weak U.S. economic data.
Source: Economy News (Investing.com)
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