‘All bets are off’: European borrowing costs hit 15-year highs as investors brace for rate hikes

European sovereign bonds continued to sell off on Friday, deepening a rout that has persisted since the U.S.-Iran war began. The move signals heightened geopolitical risk and risk-off positioning, likely lifting yields and widening risk premia across European government debt and pressuring duration-sensitive portfolios.

Analysis

European sovereign bonds continued to sell off on Friday, deepening a rout that has persisted since the U.S.-Iran war began. The move signals heightened geopolitical risk and risk-off positioning, likely lifting yields and widening risk premia across European government debt and pressuring duration-sensitive portfolios.