FX.co ★ German Bund Yields Rise on Renewed Inflation Fears

Germany’s 10-year Bund yield is approaching 3.05%, its highest level since 2011, as escalating tensions between the US and Iran and surging oil prices intensify inflation worries. Diplomatic efforts have stalled: no new peace talks are in sight, and both sides remain sharply divided over control of the Strait of Hormuz. President Trump has extended the April 7 truce indefinitely, pending a new proposal from Iran, but Iranian officials have ruled out immediate negotiations, driving Brent crude above $103 per barrel. On the data front, today’s calendar includes fresh private-sector activity readings for Germany, France, and the broader Eurozone. At the same time, Germany’s Economics Ministry yesterday cut its 2026 growth forecast by half, citing the severe energy shock stemming from the ongoing Middle East conflict.