German 10-year government bond yield hits a 15-year high as ECB rate hike looms

Germany’s 10-year government bond yield rose above 3.4%, its highest level since April 2011, as investors await today’s ECB rate decision. Markets expect the ECB to raise rates once, followed by two more hikes in 2026, with the deposit rate potentially reaching 3.1% by the end of 2027. The U.S.-Iran conflict has pushed Brent crude to $100 per barrel, while European natural gas prices have hit a three-and-a-half-year high, intensifying inflation concerns.