Bund Yield Soars Amid Renewed Oil Price Hike and Inflation Fears

The Germany 10-year Bund yield rebounded to 3.12% after reaching two-week lows, as oil prices rallied and inflation concerns resurfaced.

The renewed military exchanges between the US and Iran lifted oil prices, causing investors to grow cautious ahead of the Federal Reserve's policy decision.

Markets expect the central bank to keep interest rates unchanged, but a roughly one-third chance of a 25 bp hike is still priced in.

ECB Governing Council member Peter Kazimir stated that at least one more rate increase will likely be needed to bring inflation under control.