Euro zone yields hit new multi-year highs ahead of inflation data
TLT•Euro zone government bond yields rise to fresh highs
Euro zone government bond yields nudged up to fresh multi-year highs on Tuesday, as Europe joined a global bond selloff, and ahead of key regional inflation data.
Germany's 10-year yield, the benchmark for the euro zone, rose just over 1 basis point to 3.34%, a new 15-year high. It rose 5 bps on Monday. DE10YT=RR
Super-long 30-year yields rose nearly 2 bps to 3.83%, also their highest since 2011. DE30YT=RR
Shorter-dated bonds hold up as longer maturities weaken
That is keeping ECB-sensitive shorter-dated bonds slightly in check. Germany's 2-year yield was flat on the day at 2.92%, only a two-year high. DE2YT=RR
But longer-dated bonds were under pressure across the region. French 10-year and 30-year yields each rose 2 bps to 4.19% and 4.96% respectively, both their highest since 2008. FR10YT=RR, FR30YT=RR
Inflation data and global pressures keep bonds under strain
Yields have been spiking from Tokyo and Sydney to New York and London as the Iran war stokes energy costs globally, threatening broader price rises and bringing on more central bank interest rate hikes.
The bond market is also under pressure from a deluge of issuance as big tech companies aggressively raise money to fund the AI boom, competing with government bonds for investor cash at a time when nearly all major economies are carrying high debt loads.
Japan's 10-year yield hit 3% on Tuesday for the first time in 30 years. JP/
In Europe, the focus is on flash inflation data for August due at 0900 GMT. National data from many major economies over the last few days suggest the euro-zone-wide data could offer a modicum of relief.
