Europe's Bond Traders Turn Up Heat on Soaring Gas Prices

Natural gas has become a top concern for European bond traders due to its impact on inflation. Unlike oil, which is currently trading at a significant discount, natural gas prices are near five-month highs and winter contracts cost more than twice as much as they did a year ago.

European gas prices have been increasing, with Brent crude trading 30% below the peak hit on the back of the US-Iran war. Yields on 10-year German and UK debt have touched levels not seen in decades. This is despite oil being 30% cheaper than its peak price.