German 10Y yield hits highest since 2011

The climb in Germany's 10-year yield to a multi-decade high signals a broader repricing of euro-area rate expectations, driven by sticky inflation and a hawkish policy outlook. This matters beyond Germany, as the yield anchors European borrowing costs and pressures peripheral spreads. The key watch is whether the ECB's communication can temper the move, or if sustained yield pressure forces a policy response. For now, the trajectory hinges on incoming inflation data and central bank signals, making the next policy meeting the focal point.