The two-year German bond yield rose more than 31 basis points this week, as the Middle East situation raises investor concerns about inflation risks.

The 2-year German bond yield rose by 6.6 basis points to 3.873%, accumulating a gain of 31.3 basis points this week, with overall trading in the range of 2.001%-2.380%. The 30-year German bond yield increased by 7.0 basis points to 5.311%, with a cumulative weekly gain of 10.8 basis points. The yield spread between the 2-year and 10-year German bonds fell by 5.254 basis points to +54.460 basis points, with a cumulative decline of 9.931 basis points this week. The spread declined steadily from Monday to Thursday and accelerated downward on Friday.