Mucahithan Avcioglu
18 August 2026•Update: 18 August 2026
Germany’s 10-year government bond yield climbed to its highest level in 15 years on Tuesday as elevated oil prices, renewed inflation concerns and increasing government debt issuance triggered a broader selloff in global bond markets.
The yield on the benchmark 10-year Bund rose about 4 basis points to around 3.26%, touching its highest level since 2011. It has increased by approximately 11 basis points over the past month and 51 basis points from a year earlier.
The increase came as uncertainty surrounding the Middle East conflict kept energy prices elevated, raising concerns that another inflationary shock could force central banks to maintain restrictive monetary policies for longer.
Earlier in the day, US President Donald Trump said that Washington was not engaged in any “talks or conversations” with Iran and that no negotiations were scheduled, adding that the US naval blockade remained in force.
Beyond energy-driven inflation risks, investors are demanding higher returns to absorb growing supplies of government debt amid increased spending on defense and infrastructure.
Germany’s Finance Agency plans to issue €82 billion ($95 billion) of 10-year federal bonds through 15 auctions in 2026. A reopening of a 10-year Bund worth €6 billion is scheduled for Wednesday.
The rise in German yields formed part of a global bond-market selloff. The US 30-year Treasury yield reached its highest level since 2007, while Japan’s benchmark 10-year yield rose to a three-decade high.
Germany’s DAX stock index fell 0.8% to close at 26,128.36, as higher borrowing costs weighed particularly on technology and other growth-oriented shares.
