Eurozone Shares Muted as Bond Yields Surge on Inflation Fears

European shares were largely unchanged on Tuesday as investors digested rising bond yields and inflation concerns. The pan-European STOXX 600 index was up a mere 0.04% at 651.35 points by 0729 GMT.

Britain's FTSE 100 fell 0.4%, while Germany's DAX slipped 0.2%. France's CAC 40 bucked the trend, gaining 0.4%. Energy stocks were among the strongest performers, rising 1.4% as Brent crude traded around $92 a barrel.

The surge in bond yields has investors worried about higher interest rates and inflation. The Germany's 30-year government bond yield rose to a fresh 15-year high, while France's 30-year yield climbed to its highest level since 2008.

Renewed fighting in the Middle East has pushed energy prices higher, adding to inflationary pressures. Hawkish comments from Federal Reserve Chair Kevin Warsh last week have also contributed to expectations of tighter monetary policy.