Surge in bond yields is a result of “Trump’s war”, German minister says

By Maria Martinez

BERLIN, Aug 24 (Reuters) – The recent surge in bond yields is a result of United States President “Donald Trump’s war in Iran”, German Finance Minister Lars Klingbeil said on Monday at a press conference in Schaan, Liechtenstein. 

“The rise in interest rates in recent days and weeks is the result of global uncertainty triggered by Donald Trump’s war in Iran,” he said speaking alongside the finance ministers of other German-speaking countries.  

Germany’s 30-year government bond yield hit its highest since 2011 at 3.79% last week, with inflation fears tied to the Iran war adding to the selloff in bonds. 

Germany, the euro zone’s benchmark issuer, sold a bond at that maturity a day earlier with the highest yield in 15 years.

Washington was set to warn countries to cut ties with Iran or risk their businesses being cut off from the dollar-based financial system, a source told Reuters on Monday.

The U.S. and Iran have not conducted air strikes on each other’s militaries for weeks, but their last official face-to-face talks to end the six-month-old conflict took place in June and strikes on vessels in the Strait of Hormuz have continued.

(Reporting by Maria MartinezEditing by Ludwig Burger)