Bund Yield Hits 15-Year High as ECB Hikes Rates Again

2026-09-10 12:35 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield climbed above 3.45%, reaching its highest level since April 2011, as investors digested the ECB’s latest rate decision while a renewed oil rally intensified inflation concerns and fueled expectations of further monetary tightening.

The ECB delivered its second rate hike since the US-Iran war began, warning that inflation is likely to remain well above its 2% target for an extended period.

It kept its 2026 inflation forecast at 3.0% but raised projections for 2027 and 2028 to 2.5% and 2.1%, respectively.

Meanwhile, GDP growth forecasts were upgraded to 0.9% for 2026 and 1.4% for 2027, while the 2028 forecast remained unchanged at 1.5%.

Renewed energy-price pressures are adding to the inflation outlook, with Brent crude hitting $105 a barrel and European gas prices reaching fresh three-and-a-half-year highs amid escalating Middle East tensions.

Markets are now pricing in another ECB rate hike by December, with further tightening expected in 2027.



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Bund Yield Hits 15-Year High as ECB Hikes Rates Again
Germany’s 10-year Bund yield climbed above 3.45%, reaching its highest level since April 2011, as investors digested the ECB’s latest rate decision while a renewed oil rally intensified inflation concerns and fueled expectations of further monetary tightening. The ECB delivered its second rate hike since the US-Iran war began, warning that inflation is likely to remain well above its 2% target for an extended period. It kept its 2026 inflation forecast at 3.0% but raised projections for 2027 and 2028 to 2.5% and 2.1%, respectively. Meanwhile, GDP growth forecasts were upgraded to 0.9% for 2026 and 1.4% for 2027, while the 2028 forecast remained unchanged at 1.5%. Renewed energy-price pressures are adding to the inflation outlook, with Brent crude hitting $105 a barrel and European gas prices reaching fresh three-and-a-half-year highs amid escalating Middle East tensions. Markets are now pricing in another ECB rate hike by December, with further tightening expected in 2027.
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Bund Yield Hits Fresh 15-Year High as ECB Rate Hike Looms
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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Germany 10Y Bond Yield Hits 15-year High
Germany 10 Year Government Bond Yield increased to 3.40%, the highest since April 2011. Over the past 4 weeks, Germany 10Y Bond Yield gained 21.77 basis points, and in the last 12 months, it increased 73.00 basis points.
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