Bund Yields Rebound After Strong US Inflation

2026-10-14 13:24 By Joana Ferreira 1 min. read

German 10-year Bund yield climbed to 3.5%, tracking higher US Treasury yields after stronger-than-expected US inflation data showed both headline and core prices rising more than forecast in September, bolstering expectations of further Federal Reserve tightening.

Meanwhile, ECB President Christine Lagarde said energy-driven inflation has yet to spread across the wider euro-area economy, supporting a cautious, wait-and-see approach.

However, ECB policymaker Gediminas Šimkus warned that further rate hikes may be necessary as price pressures continue to build, adding that an increase as soon as this month remains possible.

Persistent inflation surprises and the ongoing US-Iran conflict have also reinforced market expectations of another ECB rate hike in December.

Although bond markets have shown tentative signs of stabilization following the global sell-off in late September and early October, concerns over inflation, the US-Iran war and fiscal pressures continue to weigh on sentiment.



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Bund Yields Rebound After Strong US Inflation
German 10-year Bund yield climbed to 3.5%, tracking higher US Treasury yields after stronger-than-expected US inflation data showed both headline and core prices rising more than forecast in September, bolstering expectations of further Federal Reserve tightening. Meanwhile, ECB President Christine Lagarde said energy-driven inflation has yet to spread across the wider euro-area economy, supporting a cautious, wait-and-see approach. However, ECB policymaker Gediminas Šimkus warned that further rate hikes may be necessary as price pressures continue to build, adding that an increase as soon as this month remains possible. Persistent inflation surprises and the ongoing US-Iran conflict have also reinforced market expectations of another ECB rate hike in December. Although bond markets have shown tentative signs of stabilization following the global sell-off in late September and early October, concerns over inflation, the US-Iran war and fiscal pressures continue to weigh on sentiment.
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Bund Yields Ease Ahead of US Inflation Data
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Bund Yields Ease on Safe-Haven Demand
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