Germany's Bund Yield Hits 15-Year High Amid Inflation Fears

Germany's 10-year Bund yield has hit a 15-year high, reaching near 3.25%. This is the highest level since March 2011, as investors reassess inflation risks amid rising energy costs and public spending.

The oil price has climbed to three-week highs, while European natural gas prices reached their highest level since January 2023 due to supply disruptions in the Middle East.

The Eurozone's July inflation rate of 2.9% is significantly above the European Central Bank's target of 2%, increasing expectations that policymakers will maintain a tighter monetary stance for longer.