Germany’s finance minister Lars Klingbeil has attributed the surge in global bond yields to the US military campaign in Iran. Germany’s 30-year government bond yield has climbed to 3.79%, its highest level since 2011, while the US 30-year Treasury yield exceeded 5.33% in mid-August. Oil prices have risen above $91 per barrel, fueling inflation expectations and prompting investors to sell bonds, which pushes borrowing costs higher. Germany has slashed its tax revenue forecasts for 2026 through 2030 by approximately 70 billion euros, citing an energy price shock stemming from the Iran conflict.
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