1208 GMT - German 10-year Bund yields could rise toward 3.50%, a level not seen since 2011, if speculation about European Central Bank rate hikes due to elevated energy prices continues to grow, LBBW analysts say in a note. The 10-year Bund yield is last up 1.5 basis points at 2.973%, having hit its highest level since 2023 on Thursday at 3.010%, LSEG data show. A "technically forced selloff" could ensue if investors "get ahead of themselves in terms of rate-hiking speculation," lifting Bund yields toward 3.50%, they say. This could happen if Bund yields rise sustainably above the 3.0% level. Money markets fully price a 25 basis-point ECB rate increase in June and a 60% chance of a hike in April, according to LSEG. (jessica.fleetham@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 08:08 ET (12:08 GMT)
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