Germany 10-Year Bund Yield Hovers at 3%

2026-04-16 08:49 By Joana Taborda 1 min. read

Germany’s 10-year Bund yield hovered around 3%, staying close to the 15-year highs reached earlier this month, as persistent inflation concerns continued to anchor borrowing costs at elevated levels.

Optimism over diplomatic progress in the US–Iran conflict has done little to ease pressure on bond markets, with investors still demanding a higher risk premium amid ongoing uncertainty and expectations of further ECB rate hikes.

Reports indicate that the US and Iran are considering a two-week extension of the ceasefire to allow more time for negotiations, with a second round of talks expected soon.

This has helped ease oil prices from their recent peaks.

Against this backdrop, markets are now pricing in two 25bps rate hikes by the ECB this year, down from three expected just a few weeks ago.

Earlier in the week, ECB President Lagarde acknowledged that elevated energy costs have pushed the eurozone off its baseline economic trajectory, but did not indicate any immediate rate action.



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