LONDON Oct 17 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)