Euro zone yields hit new multi-year highs ahead of inflation data

Euro zone government bond yields edged up to new multi-year highs Tuesday as Europe joined a global bond selloff and traders looked ahead to key regional inflation data. Germany’s 10-year yield rose just over 1 basis point to 3.34%, its highest in 15 years, after a 5 bps jump on Monday. Super-long 30-year yields gained nearly 2 bps to 3.83%, the top level since 2011. The pressure reflects wider risk factors: energy cost expectations tied to the Iran war, and heavy issuance as large tech firms raise capital to fund the AI boom, competing with government debt amid high public borrowing needs. Japan’s 10-year yield also climbed toward 3% for the first time in 30 years. Market focus is on euro-area flash inflation for August at 0900 GMT.