German yields hit 2-year high as Middle East conflict stokes inflation fears
German two-year bond yields reached their highest point since July 2024. This rise occurred as Middle East conflict fears boosted inflation and interest rate expectations. Money markets now anticipate the European Central Bank raising its deposit rate significantly. Oil prices also climbed due to renewed U.S. naval blockades of Iran. Investors await U.S. inflation data and Federal Reserve testimony for further guidance.
