Euro-area government bond yields rose to multi-year highs on Tuesday, joining a global fixed-income selloff. German 10-year Bund yield climbed to 3.2478%, its highest since May 2011. French 10-year OAT yield rose to 4.0954%, the highest since Novembe

2026-08-18

Euro-area government bond yields rose to multi-year highs on Tuesday, joining a global fixed-income selloff. German 10-year Bund yield climbed to 3.2478%, its highest since May 2011. French 10-year OAT yield rose to 4.0954%, the highest since November 2008. The German-French 10-year spread widened to 86bps, the largest since October 2025. Germany’s 30-year bond yield reached 3.7663%, the highest since July 2011. Markets said a prolonged Iran conflict could force governments to increase spending to offset Middle East energy-supply disruptions; a worsening geopolitical backdrop is also pushing up defense spending, further exacerbating concerns over public finances.