Bund Yields Surge to 15-Year Highs

2026-03-27 08:58 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield climbed above 3.1%, its highest since May 2011, and is on track to end March nearly 50 basis points higher.

The Iran conflict has driven energy prices up and prompted investors to abandon bets on ECB rate cuts, with traders now pricing in at least two hikes in 2026 and a possible third.

The geopolitical standoff intensified as US President Donald Trump extended his deadline for Iran to reopen the Strait of Hormuz or face strikes, while reports from Washington and Tehran offered conflicting accounts of progress in negotiations.

Despite German Foreign Minister Johann Wadephul confirming indirect contacts and upcoming direct talks in Pakistan, markets remain skeptical of a near-term resolution, viewing the delay as a tactic to allow further troop deployments.

Investors also digested fresh data underscoring growing inflationary risks across Europe, with Spain’s HICP inflation reading jumping to 3.3% in March, driven by surging fuel and lubricant costs.



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