Euro zone yields climb for sixth straight session as inflation worries weigh

Euro zone bond yields rose for the sixth consecutive session on Wednesday, with the slide in global bonds continuing as fresh escalations in the Middle East pushed oil prices higher again, adding to inflation fears.

Germany's 10-year government bond yield DE10YT=RR, the benchmark for the euro zone, hit its highest level since 2011 at 3.395% before paring its rise slightly.

Wednesday's selloff in government bonds extended a global rout that is raising borrowing costs to multi-decade highs as the Middle East conflict pushes up energy prices, playing into investor fears about inflation and ballooning government debt.

As well as the energy shock, the rise in yields has also been driven by "a hawkish tone by central banks, which aim to counter a reacceleration in inflationary pressure, still-solid economic figures, an increase in fiscal spending, sustained private investment (especially in AI) and higher macroeconomic and geopolitical uncertainty," said Francesco Maria Di Bella, FI strategist at UniCredit.