Euro Zone Bond Yields Reach New Highs Amid Global Economic Uncertainty

Euro zone government bond yields have reached new multi-year highs ahead of key inflation data. The benchmark 10-year yield for Germany rose to 3.34%, a 15-year high, and super-long 30-year yields hit nearly 2 bps at 3.83%, their highest since 2011.

The global bond selloff is attributed to various factors including the Iran conflict-driven energy costs globally, threatening broader price rises and more central bank interest rate hikes.

The bond market is also under pressure from aggressive fundraising by big tech companies to fund the AI boom, competing with government bonds for investor cash at a time when nearly all major economies are carrying high debt loads.