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Euro-zone government bond yields rose on Monday in the face of rising U.S. Treasury yields. With that, the oil prices pushed past $70 for the first since the COVID-19 pandemic began.
The central bank is stepping up the pace of bond purchases in its pandemic emergency bond-buying programme to contain rising bond yields. In early Monday trade, most 10-year bond yields were up two basis points on the day.
A sharp rise in U.S. Treasury yields, $1.9 fiscal stimulus boost helps lift growth and inflation expectations, has spilled over to other major bond markets.
Brent crude oil climbed above $70 a barrel for the first time since the COVID-19 pandemic began. While U.S. crude touched its highest in more than two years, following reports of attacks on Saudi Arabian facilities.
Rising oil prices tend to move closely with inflation expectations in the euro area, pushing bond yields up and their prices down.