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.