Hawkish Fed, German Inflation Push 10-Year Bund Yield up Closer to Zero Percent

The headquarters of the European Central Bank (ECB) in Frankfurt, Germany, on March 12, 2016. Kai Pfaffenbach/Reuters

LONDON—-Germany’s 10-year bond yield lurched closer to positive territory on Thursday, just as borrowing costs across the euro area hit new highs in the face of a hawkish tone from the U.S. Federal Reserve and fresh signs of high German inflation.

Italy’s 10-year bond yield was 4 basis points higher on the day at 1.28 percent, having jumped to its highest level since July 2020 at almost 1.32 percent.