Germany's 10-year bond yield hit its highest level since mid-2009 on Monday, pulling euro zone yields higher as traders positioned for a heavy week of central bank decisions. The move follows last week's ECB rate hike and comes just ahead of Fed, Bank of Japan, and Bank of England announcements.
Germany's 10-year yield climbed to 3.5544%, its highest level since mid-2009, rising more than 4 basis points on Monday. The move extends a sharp run higher: the yield rose by more than 16 basis points last week, its largest weekly increase since the first week of March, shortly after the Iran war started.
Bond yields across the euro zone moved higher in tandem with the German benchmark, while oil prices increased at the same time. Separately, global bond markets have faced pressure from higher energy prices and concerns about inflation and interest rates, with yields repeatedly reaching new multi-year highs.
Last week, the European Central Bank raised interest rates by 25 basis points and signaled that additional tightening remains possible. Three more decisions now follow in quick succession: the Federal Reserve, Bank of Japan, and Bank of England are all set to announce interest rate decisions this week.
Markets anticipate rate hikes from the Fed and the BOJ, while the BoE is expected to hold its current policy in what analysts predict will be a narrow decision.
Source: Investing.com
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