Eurozone Bonds Come Under Pressure as Energy Shock Revives ECB Hike Bets
Eurozone government bonds sold off sharply as a fresh energy-driven inflation impulse pushed investors to price in a longer period of restrictive European Central Bank policy, with rate hikes now seen extending into 2027. French yields climbed to an 18-year high while spreads on French and Italian debt widened, underscoring mounting concern over fiscal resilience, borrowing costs and political risk across the bloc.
