LONDON, Feb 5 (Reuters) - Germany’s 10-year government bond yield rose to their highest in almost 2-1/2 years on Monday as worries about resurgent inflation battered world bond markets.
Friday’s U.S. payrolls report showed wages growing at their fastest pace in more than 8-1/2 years, fuelling expectations for both higher inflation and more interest-rate rises from the U.S. Federal Reserve than previously anticipated.
The sell-off in U.S. bonds spilled over into Europe, where bond yields rose 1-2 basis points in early trade.
In Germany, the euro zone’s benchmark debt issuer, 10-year bond yields rose to 0.774 percent, their highest since September 2015. German 30-year bond yields rose to two-year highs at 1.429 percent. (Reporting by Dhara Ranasinghe; Editing by Robin Pomeroy)