German 10-Year Bund Yield Hovers Near 15-Year High
2026-08-17 08:35
By
Agna Gabriel
1 min. read
Germany’s 10-year Bund yield held around 3.20%, remaining close to its highest level in more than 15 years as investors assessed the risk that a prolonged Middle East conflict could keep inflationary pressures elevated.
Although Brent crude has retreated from its recent peak near $100 a barrel in July, it remains about 45% higher since the start of the year, adding to concerns over energy-driven inflation.
Tensions intensified after Iran called on the US to accept defeat, while President Donald Trump warned Americans to expect persistently high fuel prices as the conflict continues.
Markets are increasingly pricing a tighter path for European monetary policy, with the ECB deposit rate seen at 2.76% by March 2027 versus the current 2.25%, alongside more than a 90% probability of a September rate hike.
In the US, softer economic indicators have reduced expectations for an imminent Fed rate hike.