Key facts
- German 10-year Bund yields hit 3.146%, their highest since 2011.
- Brent crude oil prices surpassed $123 per barrel, a level not seen since 2022.
- U.S. Treasury and U.K. gilt yields also reached one-month highs.
- The ECB maintained its key interest rate at 2%.
- The Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%.
German 10-year government bond yields, known as Bunds, rose to their highest level since 2011 on Thursday, driven by a surge in oil prices that intensified inflation worries and increased the prospect of interest rate hikes. Brent crude for June delivery surpassed $123 per barrel, its highest since 2022, amid fears of renewed military action against Iran and a stalemate in talks concerning the Strait of Hormuz. Yields on 10-year U.S. Treasurys and U.K. gilts also climbed to one-month highs. The Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%, with some policymakers signaling a bias against future rate cuts. The European Central Bank maintained its key interest rate at 2%.