Published by Global Banking & Finance Review®
Posted on March 9, 2026
2 min readLast updated: April 1, 2026
Add as preferred source on GoogleEuro‑zone government bonds tumbled on March 9, 2026, with Germany’s 10‑year yield climbing to ~2.922% amid surging oil prices driven by Middle East conflict and Iran’s leadership change, heightening inflation and policy‑rate concerns.
LONDON, March 9 (Reuters) - Euro zone government bonds sold off sharply on Monday, pushing yields to their highest in a year as fears of a prolonged fallout from the widening war in the Middle East boosted oil prices and aggravated inflation concerns.
Germany's 10-year government bond yield, the bloc's benchmark, rose 5.9 basis points to 2.922%, its highest in a year.
The yield on the interest rate-sensitive two-year bond rose 15.1 bps to 2.459%, a level last seen in August 2024.
The U.S.-Israel war with Iran has stoked fears of a supply shock as oil shipments from the Strait of Hormuz, a crucial shipping route, lifted crude prices to their highest since 2022.
On Monday, Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as supreme leader, defying U.S. President Donald Trump and signalling that hardliners remain firmly in charge in Tehran.
While fears of a drawn-out conflict are weighing on global risk assets, bonds have not benefited from safe haven demand.
Investors worry that higher crude prices could complicate the rate outlook for central banks and revive the risk of policy tightening, dragging down bond prices, which move inversely to yields.
(Reporting by Niket NishantEditing by Bernadette Baum)
Yields rose due to fears of prolonged Middle East conflict boosting oil prices and aggravating inflation concerns.
Germany's 10-year government bond yield rose to its highest level in a year at 2.922%.
The war has raised fears of a supply shock, lifting crude prices to their highest since 2022.
Investors are worried that higher oil prices could lead to central bank tightening, outweighing typical safe haven effects.
Mojtaba Khamenei was named to succeed his father Ali Khamenei as Iran's supreme leader.
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