Global Market: Eurozone bond yields surge as energy prices fuel rate hike bets

Eurozone government bond yields increased sharply on Thursday as higher energy prices strengthened expectations of tighter monetary policy. Investors sold debt from heavily indebted countries, including France and Italy, widening risk premiums. The selling was part of a global bond market rout driven by growing expectations of central bank rate hikes and concerns over high government debt burdens.

Eurozone government bond yields rose sharply again on Thursday as higher energy prices reinforced expectations of tighter monetary policy, while investors continued to sell debt of heavily indebted countries such as France and Italy, widening their risk premiums, Reuters reported. The renewed selling came amid a global bond market rout driven by growing expectations of central bank rate hikes and concerns over elevated government debt burdens.

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