European bond yields hit multi-year highs as global sell-off continues
Long-term European government bond yields remain close to multi-decade highs, as inflation and interest-rate concerns keep driving the sell-off.
European bond yields have reached multi-year highs due to the ongoing conflict in the Middle East, which is threatening to keep energy prices and inflation elevated. The conflict has further deteriorated the outlook for crude supplies, with Iran-backed Houthi rebels attacking Saudi energy targets and advancing towards the Bab el-Mandeb Strait.
This has led to government borrowing costs rising rapidly in Europe, with the European Central Bank raising interest rates and warning that inflation could remain high for an extended period. As a result, investors are bracing for further rate hikes, which could make borrowing more expensive.
Brief written by urgent.news from Euronews's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
