Eurozone bond yields remained near multi-year highs as investors assessed rising energy costs, German political uncertainty and Japans market volatility ahead of Thursdays ECB meeting. Germanys 10-year yield hovered around 3.38%, near a 15-year peak. Higher oil and gas prices could fuel inflation, complicating expectations for the ECBs future policy path.

European bond yields hit multi-year highs as natural gas prices surge past €75/MWh, flipping ECB rate expectations from cuts to hikes amid rising

Deutsche Bank has raised its peak ECB interest rate projection to 2.75%, forecasting additional 25 basis point hikes in September and December. Persistent energy risks and…