Euro zone government bond yields decreased slightly on Friday. This followed a pullback in oil prices and ongoing inflation concerns. Investors are assessing the outlook for interest rates after recent market movements. The European Central Bank kept rates unchanged but signaled potential future hikes. Bond markets experienced selling pressure due to energy cost worries.

German 10-year Bund yields surged past 3.2%, hitting levels not seen since 2011 as Middle East tensions and ECB rate hike expectations reshape

Lagarde warns prolonged energy price spike could fuel inflation across the eurozone.