Bund Yield Hits Highest Level Since 2009
2026-09-24 10:16
By
Joana Ferreira
1 min. read
Germany’s 10-year Bund yield extended its recent rise to 3.58%, its highest level since mid-2009, as elevated oil prices and stronger economic data bolstered expectations of further monetary tightening by the European Central Bank.
Brent crude rebounded above $105 a barrel as heightened Middle East tensions clouded prospects for a diplomatic resolution to the US-Iran war.
Meanwhile, German business sentiment improved more than expected in September, reaching its highest level in more than three years, following stronger-than-expected PMI data released on Wednesday.
Eurozone private-sector activity also expanded at its fastest pace in nearly three and a half years.
Money markets are now pricing in at least one 25-basis-point ECB rate hike by year-end, with around a 40% probability of a second.
In the US, investors also increased bets on further Federal Reserve rate hikes following hawkish comments from policymakers and stronger-than-expected PMI data.