Europe joined a global bond sell-off on Tuesday, lifting euro-area government yields ahead of key inflation data. The German 10-year Bund yield rose just over 1bp to 3.34%, a 15-year high after a 5bp gain on Monday. The 30-year Bund climbed about 2bp to 3.83%, its highest since 2011. Yields also jumped in Tokyo, Sydney, New York and London as the Iran conflict pushed up global energy costs, threatening broader inflation and prompting further central bank tightening. Heavy issuance pressure — fro

Germany's 10-year Bund yield touched 3.31% intraday on Aug. 31, the highest since 2011 and roughly 20 bps below the 2011 peak of about 3.49%. August CPI rose to 2.9% YoY, driven by a 10.5% jump in energy while core inflation eased to 2.4%, suggesting recent pressure is energy-led. The Bund selloff has been amplified by higher oil, a global long-end bond selloff, and expanded German infrastructure and defence spending with larger planned issuance. Sustained higher yields would raise government and corporate funding costs and lift equity discount rates; even if energy inflation fades, increased sovereign supply and a higher term premium could prevent a return to zero or negative rates.

Tasnim News quoted Energy Minister Abbas Aliabadi as saying that, barring unforeseen events this week, residential and industrial electricity rationing will be lifted from next week. He said summer power supplies passed smoothly and urged consumers to conserve electricity.