29.04.202608:11:34UTC+00German Bund Yields Surge as Inflation Pressures Build

Germany’s 10-year Bund yield advanced toward 3.1%, nearing its highest level since 2011, as investors digested fresh inflation data and looked ahead to upcoming policy decisions from the Federal Reserve and the European Central Bank. Market participants also closely monitored the impasse in US-Iran negotiations.

Regional consumer price figures from Germany pointed to mounting inflationary pressures in April, while Spain’s EU-harmonized inflation rate rose to 3.5%, its highest reading since mid-2024.

On the monetary policy front, both the Fed and the ECB are widely expected to leave interest rates unchanged this week, maintaining a cautious stance in light of the ongoing Middle East crisis. Nevertheless, markets still see scope for further tightening by the ECB, with futures fully pricing in three additional quarter-point hikes in 2026.

Heightening inflation concerns, oil prices climbed to four-year highs following reports that US President Trump had ordered preparations for a prolonged US naval blockade of the Strait of Hormuz to increase economic pressure on Iran, according to the Wall Street Journal.