European Bond Yields Pause at Multi-Year Highs Amid Energy Cost Pressures

European sovereign debt markets are taking a breather on Monday after a relentless sell-off pushed benchmark yields to multi-year highs last week.

The yield on the German bund, which serves as the benchmark for the single-currency bloc, was virtually unchanged at 3.624%.

This pause comes after seven consecutive weekly advances in German borrowing costs, marking their longest stretch since 2022 due to persistent energy cost pressures and hawkish central bank guidance.

At the short end of the curve, the 2-year German bund yield was similarly steady at 3.310%, holding just shy of its peak levels from 2023.