European Bond Yields Soar to 15-Year Highs Amid Global Sell-Off

European government bond yields have surged to their highest levels in over 15 years as a global sell-off deepens. Germany's benchmark borrowing costs reached a 15-year high, with France and Italy seeing similar steep rises.

The yield on the German 10-year Bund rose above 3.36% before falling back to around 3.34%. The bond market is currently under pressure due to rising oil prices and increasingly hawkish signals from major central banks.

Investors are concerned that high energy prices will fuel inflation globally, prompting interest-rate increases by central banks in the US, Japan, and the eurozone. Eurozone inflation rose to 3.3% in August, significantly above the ECB's 2% target.