German Bund Yields Hit One Month High as French Borrowing Costs Reach Highest Since 2009 on Iran Oil Shock

German 10 year Bund yields rose 8 basis points to 3.07% on Wednesday, July 8, 2026, their highest in nearly a month and an eighth consecutive daily rise, the longest such streak since January. French borrowing costs hit their highest level since 2009 on the same day.

The rise in European yields coincided with a 5.2% jump in Brent crude to 78.02 dollars a barrel after US President Donald Trump declared an end to the ceasefire with Iran. Bloomberg reported the next day, July 9, that German yields eased slightly as some of the immediate alarm faded. The episode illustrates that, unlike typical geopolitical shocks, European bond markets this time reacted mainly to inflation fears from the Iran linked oil price spike and Strait of Hormuz risk rather than acting as a safe haven.