Traders are selling German 10-year government securities — the benchmark for long-term borrowing cost in Europe — at the fastest pace since February this month, driving the yield to its highest since 2011.
The 10-year German bond yield climbed above 2.80% — more than 30 basis points higher this month. The euro, meanwhile, has been in locked in a downward spiral for more than two months, weighed down by mounting fears over stagflation. It was trading around $1.0635, around its lowest levels since May. The repricing in Europe is driven in part by data out of America last week showing the economy remains far stronger than many expected after the Federal Reserve’s own aggressive hiking campaign.