Bund Yield Hits Fresh 15-Year High as ECB Rate Hike Looms

2026-09-09 08:01 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield rose above 3.4%, touching its highest level since April 2011, as investors braced for today’s European Central Bank policy decision.

Policymakers are widely expected to raise interest rates while maintaining their data-dependent approach, with the ongoing US-Iran war adding to uncertainty over the inflation outlook.

Brent crude reached $100 a barrel for the first time since July 24, while European natural gas prices climbed to fresh three-and-a-half-year highs as escalating tensions in the Middle East heightened concerns over energy supplies and renewed inflationary pressures.

Markets are now pricing in two ECB rate hikes in 2026, with the deposit rate seen reaching 3.1% by late 2027.

A Reuters poll published on September 3 indicated that the ECB was expected to raise rates on Thursday for a second time before bringing what would be its shortest rate-hiking cycle in 15 years to an end.



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