LONDON, Feb 15 Reuters Most euro zone bond yields rose to multimonth highs on Monday with investors betting on a brighter economic outlook and a pickup in inflation as oil prices rose to their highest level in over a year.
Tenyear bond yields in Germany, France and the Netherlands all rose to their highest since early September, while Germanys 30year bond yield rose to an eightmonth high.
A selloff in major bond markets has gathered pace in recent sessions, as coronavirus vaccine rollouts and U.S. fiscal stimulus boosts expectations of a strong economic recovery.
Benchmark U.S. Treasury yields rose to their highest levels since March on Friday, pushing prices down. This selloff, along with a rise in Brent crude oil prices to highs above 63 a barrel weighed on euro zone debt markets on Monday.
Germanys benchmark 10year Bund yield rose 4 basis points to a 512 month high at 0.387.
Its 30year bond yield, up 20 bps so far this month, rose to an eightmonth high at almost 0.13 having traded in negative yield territory just over a week ago.
Across the euro area, longdated bond yields in higherrated markets such as the Netherlands and France were 45 bps points higher on the day.
The reflation sentiment remains alive and kicking, although with chances for nearterm consolidation in Bunds following the latest selloff, said Commerzbank strategist Rainer Guntermann.
With U.S. bond markets closed for a holiday and parts of Asia closed for the Lunar New Year, trade across…