Germany’s 30-year government bond yield climbed to 3.79% last week, the highest since 2011, as Finance Minister Lars Klingbeil attributed the surge to escalating global uncertainty tied to the conflict between the United States and Iran.
Speaking at a press conference in Schaan, Liechtenstein, Klingbeil stated that the recent increase in interest rates reflects the market’s reaction to Donald Trump’s military engagement in Iran. Germany, the euro zone’s benchmark issuer, has seen heightened demand for higher yields amid concerns over inflation linked to the prolonged standoff.
On Sunday, Germany sold a 30-year bond at a yield not seen in 15 years, underscoring the scale of the move. The latest bond issuance follows six months of intermittent conflict between the U.S. and Iran, which has included strikes on vessels in the Strait of Hormuz despite a pause in direct military air strikes.
The minister’s remarks were made during a meeting with finance ministers from German-speaking nations, highlighting the broader regional implications of the geopolitical tensions.
