German Bund 10-Year Yields Hit 15-Year High at 3.23% as Oil Surges Past $100

According to Yonhapnews, German Bund 10-year yields reached 3.2304% on July 23, their highest level since May 2011, driven by surging international oil prices and monetary policy expectations. Brent crude briefly exceeded $100 per barrel for the first time since May 26, amid escalating U.S.-Iran tensions and concerns over Red Sea blockade risks. The European Central Bank held all three main policy rates unchanged on the day, including the deposit rate at 2.25%. However, ECB President Christine Lagarde indicated that some Governing Council members questioned whether rate hikes should be considered, and said the central bank requested staff to conduct in-depth analysis ahead of the September meeting. Market pricing via overnight index swaps reflects a 23 basis point expected hike in September, with odds of a 25bp increase exceeding 90%.
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