Bonds: Yields Continue to Climb

The sharp rise in oil prices is fueling inflation fears. Yields continue to rise, while bond prices fall. Central bankers are trying to counteract this trend. In the corporate bond market, foreign-currency bonds remain in demand.September 11, 2026. FRANKFURT (Deutsche Börse). The price of oil continues to drive the bond markets. Due to renewed escalation in the Middle East, the price of a barrel of Brent crude has risen above $100 again this week. This is fueling inflation fears. “The turbulence in the fixed-income market continues,” notes Rainer Petz, who trades bonds for Oddo BHF.The yield on 10-year German government bonds rose again this week, peaking at 3.51 percent. As of Friday afternoon, it still stands at 3.5 percent, the highest level since 2009. The yield on 10-year U.S. Treasuries approached the closely watched 5 percent mark again this week, peaking at 4.977 percent. The yield on 30-year U.S. Treasuries has reached its highest level since 2004, currently standing at 5.36 percent.ECB Delivers as ExpectedAs expected, the ECB raised key interest rates again yesterday, Thursday. The deposit rate now stands at 2.5 percent. The central bankers were responding to signs that inflation is likely to remain well above 2 percent. “With this move, the central bankers are underscoring their determination to sustainably curb inflation in the eurozone, particularly with regard to energy costs,” commented LBBW analyst Antje Laschewski.The central bankers left the way forward open. According to Leon Ferdinand Bost of Metzler, however, there were definitely “hawkish” signals—that is, signals pointing to further interest rate hikes. “The door for another interest rate hike in December is now wide open.” Commerzbank shares this view: “At yesterday’s press conference, ECB President Lagarde opened the door to further interest rate hikes, stating that ‘inflation in the eurozone is expected to remain well above the 2 percent target for an extended period,’” explains analyst Pascal Reichert.Crucial for the trajectory of key interest rates in the U.S. are the latest U.S. inflation figures due out today, Friday, at 2:30 p.m. German time. Currently, the market is pricing in a roughly 70 percent probability of an interest rate hike at the Federal Reserve’s meeting next Wednesday.“Initial U.S. Treasury Bond Buybacks Disappointing”According to Robert Halver of Baader Bank, the rise in yields on U.S. Treasury bonds remains underpinned by inflation. U.S. Treasury Secretary Bessent will not be able to “effectively bluff market speculators, despite his bold statements.” Even the first round of Treasury buybacks, totaling $6 billion, was disappointing given expectations of $8 to $10 billion. And Donald Trump’s $5,000 election bonus, which continues to strain the federal budget, isn’t helping either. “If necessary, the only real yield killer can be the Fed.”Corporate Bonds: Popular in Foreign CurrenciesCorporate bonds remain in demand. “Investors are responding positively to the higher interest rates,” reports Gregor Daniel of Walter Ludwig Wertpapierhandelsbank. Foreign-currency bonds also remain popular. The European Bank for Reconstruction and Development’s bond denominated in Turkish lira (XS3457420423) continues to be purchased. Investors are also turning to Alphabet bonds denominated in Australian and U.S. dollars.Gregor DanielThe new issue market is quiet. “There haven’t been any major issues,” reports Oddo trader Petz. According to Daniel, a new bond on the market is one issued by Norddeutsche Landesbank with a 3.5 percent coupon maturing in 2029 ( ). “It’s being snapped up right away,” the trader reports.By Anna-Maria Borse, September 11, 2026, © Deutsche Börse AG About the Author Anna-Maria Borse is a finance and business editor specializing in financial markets, the stock market, and economic issues.Please send feedback and questions to live@deutsche-boerse.com

Bonds: Yields Continue to Climb

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