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Germany's 10-year government bond yield was last down 2 basis points at 3.625%. Bond yields move inversely to prices. The yield on the euro zone benchmark was falling for the first day in six days after rising to its highest level in 17 years on Monday at 3.6526%. Germany's 10-year bond yield experienced a slight decrease after reaching a 17-year high recently. Rising global interest rates are driven by strong economic growth and elevated energy prices. The European Central Bank may implement additional rate hikes to combat inflationary pressures. Money markets are pricing in nearly four quarter-point hikes following previous increases over the summer. Investor concerns about further growth slowdowns due to higher long-term yields remain significant. Oil and gas prices remain the biggest driver of euro zone bonds by fuelling concerns that energy-driven inflation could force the European Central Bank to raise rates further. On Monday, ECB President Christine Lagarde said the central bank views a measured response as appropriate to keep inflation in check. She also flagged that bond market developments, namely rising long-term yields, could slow growth. "We assess that this means one or two additional hikes from here," Olavi Kaskisaari, economist at Danske Bank, said. "It also means that the ECB is not in a hurry to hike again, which makes the next hike already in October less likely." Money market traders are currently pricing in almost four more quarter-point rate hikes, on top of the two moves made over the summer. Germany's 2-year bond yield, which is sensitive to changes in ECB rate expectations, was down about 2 bps at 3.281%, after hitting a 3-year high the day before. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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