German Yields Hold Near Weekly Highs as Oil Surge Revives Inflation Risks

Germany’s 10-year Bund yield held near 3.15% on August 12, while the two-year yield stayed around 2.78% as oil prices extended a six-session rally and German inflation accelerated to 2.8% in July. Rising energy costs are reducing expectations for near-term ECB easing.

For traders, U.S. CPI is the next major catalyst. A hotter reading could reinforce global bond-selling pressure and push Bund yields higher, while softer inflation may ease rate expectations and support European bonds.