Germany’s 10-year Bund yield climbed to 2.79%, its highest level since February 10, as investors reacted to stronger-than-expected Eurozone inflation data and rising tensions in the Middle East. February figures showed Eurozone annual inflation at 1.9% and core inflation at 2.4%, both above forecasts. Energy costs added to market pressures, with natural gas and crude oil prices surging following the formal closure of the Strait of Hormuz and the continued suspension of Qatari LNG exports. Higher energy prices are expected to sustain inflationary pressures across Europe, potentially encouraging the European Central Bank to maintain a hawkish policy stance. Meanwhile, US President Donald Trump said the military campaign against Iran could last four to five weeks but stressed that US forces are prepared to extend operations if necessary.
