German Bund Yield Remains Close to 15-Year High

2026-03-20 09:02 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield held steady at 2.95% on Friday, just below the near 15-year peak of 3.01% reached the previous day.

The persistent upward pressure follows the European Central Bank’s stark warning about escalating inflation risks, which has reinforced expectations of imminent interest rate hikes.

The ECB left rates unchanged on Thursday but adopted a more hawkish stance, raising its inflation outlook and trimming growth forecasts amid soaring energy prices fueled by the Iran conflict.

In response, major banks now anticipate a rate increase as early as April, with money markets fully pricing in a hike by June and assigning a 60% chance of a move in May.

ECB policymaker Joachim Nagel underscored the potential for a rate rise next month if inflationary pressures persist, while Francois Villeroy de Galhau reaffirmed the bank’s readiness to take necessary action.



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German Bund Yield Rises as Iran Oil Crisis Fuels ECB Rate Hike Bets
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Germany’s 10-year Bund yield held steady at 2.95% on Friday, just below the near 15-year peak of 3.01% reached the previous day. The persistent upward pressure follows the European Central Bank’s stark warning about escalating inflation risks, which has reinforced expectations of imminent interest rate hikes. The ECB left rates unchanged on Thursday but adopted a more hawkish stance, raising its inflation outlook and trimming growth forecasts amid soaring energy prices fueled by the Iran conflict. In response, major banks now anticipate a rate increase as early as April, with money markets fully pricing in a hike by June and assigning a 60% chance of a move in May. ECB policymaker Joachim Nagel underscored the potential for a rate rise next month if inflationary pressures persist, while Francois Villeroy de Galhau reaffirmed the bank’s readiness to take necessary action.
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