Global government bond yields reached fresh multiyear highs as investors assessed the European Central Bank’s latest rate increase, renewed energy-price pressures and the U.S. Treasury’s first higher-volume bond buyback auction. Germany’s 10-year Bund yield rose above 3.45%, its highest level since April 2011, while the 10-year U.S. Treasury yield reached 4.867% and the 10-year U.K. gilt touched 5.295%. The ECB delivered its second rate hike since the US-Iran war began and warned that inflation could remain above its 2% target for an extended period. It kept its 2026 inflation forecast at 3.0% and raised its 2027 and 2028 projections to 2.5% and 2.1%. Brent crude reached $105 a barrel and European gas prices hit fresh three-and-a-half-year highs amid escalating Middle East tensions. Markets are pricing in another ECB rate hike by December and further tightening in 2027. In the United States, the Treasury’s $6 billion buyback covers 10- and 20-year debt under a framework that at least doubled per-operation purchase ceilings for longer-dated securities from $2 billion to $4 billion. The operation’s size disappointed some investors, contributing to higher Treasury yields.