Bund Yields Soar Amid Oil Price Uncertainty

The yield on Germany's 10-year Bund has risen above 3.5%, returning to levels not seen since mid-2009, as investors assess stronger-than-expected PMI data and uncertainty surrounding US-Iran talks.

Oil prices rebounded amid the uncertainty, making them an increasingly important factor in monetary-policy decisions according to ECB official Joachim Nagel.

The Eurozone private-sector activity expanded in September at its fastest pace in almost three-and-a-half years, reinforcing expectations that the European Central Bank could raise interest rates further this year.

Chief Economist Philip Lane warned that another surge in energy prices could keep eurozone inflation elevated for longer than expected.