European bond yields hit multi-year highs as Iran war stokes inflation fears

Government bond yields across Europe's largest economies jumped after US-Iran peace talks broke down, reviving inflation concerns. France's 10-year yield climbed to 4.10 percent, its highest since June 2009, while Germany's 10-year Bund yield passed 3.25 percent, its highest since March 2011. Brent crude rose to nearly $91 a barrel, and markets now price a 90 percent chance of an ECB rate hike in September.

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