German bond yields rose to the highest level since 2011 as surging energy prices and mounting inflation expectations fueled bets on interest‑rate hikes ahead of the European Central Bank’s decision later Thursday.

The surge in oil spikes has pushed yields above the 15‑year peak, reflecting a shift in market sentiment toward tighter monetary policy. Investors now weigh the likelihood that the ECB will raise rates to curb inflation, a move that would further lift yield curves across the euro area.

The recent uptick in commodity prices has eroded the real returns on German sovereign debt, prompting a sell‑off in bonds and a corresponding rise in yields. Analysts note that the 15‑year high signals a shift in risk appetite, as the market digests the dual pressures of energy costs and price‑level expectations.