Global Market: German bond yields hit two-year high as oil surge fuels ECB rate hike bets

Brent crude prices surged about 3% to above $90 a barrel after US-Iran tensions threatened oil shipments through the Strait of Hormuz. Germany's two-year bond yield rose to 2.79%, the highest since July 2024, with markets now pricing an ECB rate hike at the September meeting. The development is negative for India as a major oil importer, with rising global yields also likely to pressure FII flows into emerging markets.