‘All bets are off’: European borrowing costs hit 15-year highs as investors brace for rate hikes

Bonds issued by various European countries continued to sell off on Friday, deepening a rout that has been mostly continuous since the U.S.-Iran war began. Borrowing costs across the continent have reached 15-year highs as investors anticipate that central banks will be forced to implement aggressive interest rate hikes to curb soaring inflation. Analysts suggest that the geopolitical instability has fundamentally shifted market expectations, leading to a 'no-holds-barred' environment for yields.