Rising energy prices and firmer inflation expectations are adding pressure on the ECB ahead of Thursday's policy decision, pushing benchmark German bond yields to a 13-year high.
German 10-year bond yields rose to their highest level since 2011 as higher energy prices and rising inflation expectations increased pressure on the ECB (European Central Bank) ahead of Thursday's rate decision. The move in benchmark yields points to tighter financial conditions and reflects investor concern that persistent price pressures could complicate the central bank's policy path.