FX.co ★ German Bund Yields Hold Near 15-Year Highs Amid Inflation Fears

Germany’s 10-year Bund yield held just below 3%, hovering near a 15-year high as persistent inflation worries kept borrowing costs elevated. Market participants continued to track escalating tensions in the Middle East and the European Central Bank’s cautious stance, while also assessing the latest German investor sentiment figures. US President Donald Trump confirmed that the two-week ceasefire between Washington and Tehran will expire on Wednesday evening, with US Vice President JD Vance and an Iranian delegation due to arrive in Pakistan later today for peace talks. Meanwhile, ECB President Christine Lagarde cautioned that the economic outlook remains “deeply uncertain,” pointing to energy supply disruptions stemming from the Middle East conflict as a key risk, although she emphasized that energy prices have not yet risen to the ECB’s worst-case projections. On the data front, Germany’s ZEW economic sentiment index dropped to -17.2 in April, its lowest level since late 2022 and well below expectations of -5, underscoring mounting pessimism.