09.04.202608:23:25UTC+00Bund Yield Rebounds to 2.98% on Ceasefire, Oil Surge

Germany’s 10-year Bund yield rebounded to 2.98% on Thursday, erasing the previous session’s 14-basis-point decline, as mounting doubts over a fragile US-Iran ceasefire sent oil prices sharply higher. The spike in energy costs rekindled inflation concerns, particularly after Israel carried out its deadliest airstrikes yet on Lebanon, killing hundreds and prompting Iranian threats of retaliation. Tehran ruled out further peace talks with Washington, while the ongoing blockade of the Strait of Hormuz added pressure to an already precarious truce. Tensions escalated further after US President Donald Trump insisted American forces would remain near Iran until a “real agreement” is secured. In response, markets moved to price in a tighter monetary stance, with traders now anticipating at least two ECB rate hikes by the end of 2026.