Germany’s 10-year Bund yield rose above 3.05%, nearing its highest level since 2011, as climbing crude prices and persistent inflation concerns strengthened expectations of further European Central Bank rate hikes. Although the ECB is widely expected to leave interest rates unchanged at its meeting on Thursday, markets are still pricing in at least two additional quarter-point increases for 2026.
Brent crude traded above $111 per barrel after reports that US President Donald Trump rejected Iran’s latest proposal to delay nuclear program negotiations until the current conflict and shipping disputes are resolved.
At the same time, investors are preparing for a data-heavy week, with flash Eurozone inflation and GDP figures due for release. Heightening economic unease, German consumer confidence fell to a three-year low ahead of May 2026, as income expectations dropped sharply and purchasing sentiment deteriorated amid the intensifying war in Iran.
