LONDON, Oct 17 (Reuters) - Germany’s benchmark 10-year bond yield rose to its highest level since June on Monday, tracking U.S. bond yields higher after hawkish comments from the head of the U.S. Federal Reserve.
Long-dated U.S. Treasury yields rose to four-month highs on Friday after firm U.S. economic data and remarks from Fed chief Janet Yellen suggested the central bank may allow inflation to exceed its 2 percent target.
That set the tone for early bond market trade in Europe, with Germany’s Bund yield briefly touching 0.093 percent - its highest level since the June 24 results of Britain’s referendum on membership of the European Union.
Bund futures dipped, while yields in the broader euro zone bond market edged higher with focus turning to this week’s European Central Bank meeting. (Reporting by Dhara Ranasinghe; Editing by Andrew Heavens)