Euro Zone Bond Yields Nudge Higher on Oil Price Surge

The yield on Germany's 10-year government bond, the benchmark for the euro zone, rose to its highest level since June 2009 at 3.6303%.

This increase comes as oil prices climbed again due to doubts about the U.S.-Iran war resolution and the Strait of Hormuz reopening anytime soon.

The European Central Bank has already hiked interest rates twice this year to combat inflation, with markets pricing in at least one more increase this year.

Flash inflation figures due this week will be closely watched to assess if any second-round inflation effects are emerging.