‘All bets are off’: European borrowing costs hit 15-year highs as investors brace for rate hikes

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European government bonds continued to sell off on Friday, building on a rout that has seen multiple countries’ borrowing costs hit multi-decade highs in recent weeks.

Thursday saw the yield on Germany’s 10-year bund

— a benchmark for the euro zone — surge to the highest level since mid-2011 at the height of the euro crisis. On Friday morning, the 10-year bund added a further 6 basis points to trade at 3.1228%, holding above that 15-year high.

Bond yields and prices move in opposite directions, and one basis point equals 0.01%.