Euro Zone Bond Yields Hit 14-Year Highs Amid Global Debt Concerns

Long-dated euro zone bond yields soared to their highest levels in 14 years on Monday, following a similar trend in U.S. Treasury yields, as investors remain anxious over mounting government debt worldwide.

Germany's 30-year yield climbed 3 basis points to reach 3.378%, its peak since August 2011. French and Dutch long-term yields mirrored this increase, marking their highest levels in over a decade. August saw the most significant monthly increase in long-dated euro zone bond yields in five months, driven by ongoing pressure on mature economies' debt. Meanwhile, the 30-year U.S. Treasury yield rose 4 basis points last Friday.

While U.S. markets paused in observance of Labor Day, euro zone bond yields continued to rise. Germany's 10-year yield increased by 2 basis points to 2.75%. In France, political developments have adversely affected government bonds, pushing the 10-year yield up by 2 basis points to 3.53%. This has widened the yield spread between German and French bonds to 78 basis points. European Central Bank President Christine Lagarde acknowledged the situation but noted that France does not currently require IMF intervention.

(With inputs from agencies.)