ECB Rate Hike Triggers Bond Yields Surge to 15-Year Highs

European stocks plummeted following the European Central Bank's (ECB) decision to raise interest rates, pushing bond yields to their highest levels in 15 years.

The ECB rate hike has sent shockwaves through financial markets, causing investors to reassess their portfolios and seek safer assets. The move is a response to soaring inflation rates in the region, which have been driven by rising energy prices and supply chain disruptions.

Bond yields have surged as a result of the rate increase, with long-term government bonds seeing significant price drops. This has led to increased borrowing costs for governments and companies, potentially dampening economic growth.