German Bund Yield Hits 15-Year High Amid Oil Rally and Inflation Fears

The German 10-year bund yield rose to its highest level in about 15 years on September 9, driven by escalating Middle East tensions and concerns about resurgent inflation.

The yield reached the mid-3.4% range, up roughly 0.07 percentage points from the same time the previous day, as front-month Brent Crude futures briefly climbed to the mid-$101-per-barrel range, marking its highest level in about a month and a half.

Market participants expect the European Central Bank (ECB) to raise its policy rate to 2.5% at its Governing Council meeting on October 10, citing a more resilient growth backdrop as support for further tightening.