Euro zone bond yields hit one-year highs on oil spike

Euro zone government bonds experienced a sharp sell-off on Monday, driving yields to their highest levels in a year. This market movement comes as investors react to the escalating conflict in the Middle East, which has triggered a surge in energy prices and renewed fears of persistent inflation.

The benchmark 10-year government bond yield in Germany climbed by 5.9 basis points to reach 2.922%. Meanwhile, the two-year bond yield, which is particularly sensitive to interest rate expectations, jumped 15.1 basis points to 2.459%, marking its highest point since August 2024.