European government bond yields rose on the 14th as higher energy prices intensified concerns that inflation could resurge. Germany’s benchmark 10-year Bund yield reached 3.5544% during the session, its highest level in roughly 17 years, while UK 10-year gilt yields climbed to levels last seen in 2007. French long-term yields briefly reached the 4.5% range, their highest since 2008, and the spread over German debt widened to the 0.9% range, the widest in approximately 14 years. Markets are pricing in rate hikes from the Federal Reserve and Bank of Japan, while the Bank of England is expected to hold rates on the 17th, although analysts see the decision as potentially close. The European Central Bank raised rates by 0.25% the previous week and has kept open the possibility of further tightening. Continued increases in European yields would raise borrowing costs and could weigh on regional economic growth.