The yields on Germany's benchmark government bonds climbed on Tuesday with the return on the 5-year bond hitting the highest level since July 2011.
The move comes after US Treasuries hit 11-year highs as investors await the United States Federal Reserve's interest rate decision on Wednesday. The central bank is expected to raise rates by 75 or 100 basis points. German bond prices, which move inversely to yields, were also affected by soaring energy prices and concerns about high inflation.
The 5-year German federal bond yield jumped 11.2 basis points to 1.803% at 11:13 CET and the 10-year federal bond yield rose 10.1 basis points to 1.89% at the same time.
