Germany’s 10-year Bund yield has climbed to its highest level since 2011 as investors price in persistent eurozone inflation and potentially more aggressive monetary policy tightening by the European Central Bank (ECB). The increase has been linked to rising energy costs, supply-chain disruptions and robust consumer demand, while resilient German manufacturing and employment data have supported expectations that the ECB can normalize policy without derailing growth. Higher Bund yields raise borrowing costs for eurozone governments, companies and households, can support the euro by attracting foreign capital, and mirror rising yields in the United States and the United Kingdom. Investors will watch ECB meetings and inflation data for signals on tapering, interest-rate increases or a possible stabilization in yields if inflation peaks.