Germany 10-Year Bund Yield Holds at 15-year High
2026-08-20 15:45
By
Agna Gabriel
1 min. read
Germany’s 10-year Bund yield remained near 3.25%, close to its highest level since March 2011, as investors assessed rising inflation risks, increased public spending and higher energy costs.
Oil prices were trading near three-week highs, while European natural gas prices climbed to their highest level since January 2023 amid supply disruptions linked to the Middle East, adding to concerns that inflationary pressures could persist.
Eurozone inflation accelerated to 2.9% in July, well above the European Central Bank’s 2% target, strengthening expectations that policymakers may need to maintain a tighter monetary stance for longer.
Higher energy costs could further complicate the ECB’s efforts to bring inflation back toward target, particularly if supply disruptions persist.
German government bonds also followed the broader global fixed-income selloff, with US Treasury yields rising as the initial support from the Treasury’s expanded buyback programme faded.