German Bond Yields Hit 15-Year High as Oil Spikes Before ECB

German bond yields jumped to their highest level since 2011 as surging energy prices and rising inflation expectations drove bets on ECB interest-rate hikes ahead of Thursday’s decision. The move signals a hawkish repricing of rates that is likely to pressure broader euro-area duration-sensitive assets.

Analysis

German bond yields jumped to their highest level since 2011 as surging energy prices and rising inflation expectations drove bets on ECB interest-rate hikes ahead of Thursday’s decision. The move signals a hawkish repricing of rates that is likely to pressure broader euro-area duration-sensitive assets.