German finance chief blames Iran war for surging bond yields
Lars Klingbeil said the conflict has disrupted energy supplies, raised gas prices and pushed borrowing costs higher across Europe.
German Finance Minister Lars Klingbeil blamed President Donald Trump’s war in Iran for a surge in bond yields across global markets.
Klingbeil said the conflict had disrupted energy supplies and added to economic hardship in Europe, including through higher gas prices. He described rising rates as a consequence of uncertainty created by the war.
German borrowing costs have risen to levels not seen since the global financial crisis. Yields reached a 15-year high in a major sale of long-dated bonds last week as investors weighed inflation and government spending.
US Treasury Secretary Scott Bessent’s purchases of longer-term debt have so far failed to reverse the rise, Bloomberg reported, amid high sovereign debt, increased corporate issuance and uncertainty over Federal Reserve policy.